Union Pacific and Norfolk Southern today announced plans to merge and “create America’s first transcontinental railroad.” The National Grain and Feed Association (NGFA) will undertake an extensive evaluation of the proposed merger to better understand its implications for our industry.
If asked for comment by press or policymakers during this evaluation phase, NGFA will provide the following statement by President and CEO Mike Seyfert:
“About 3.2 million rail cars of grains, oilseeds and other agricultural products move by rail on an annual basis, representing more than 10 percent of all rail shipments, and 26 percent of grain has at least one rail movement. It is an important partnership between America’s rail carriers and NGFA’s hundreds of members that help to deliver and Transform America’s Harvest into the bounty that feeds and fuels the country and the world. NGFA looks forward to hearing from the Union Pacific and Norfolk Southern railroads and learning how they believe the merger will create resilient and reliable efficiencies and incentives in timeliness of service and deliveries – along with fair and reasonable rates to better serve our members. NGFA will also undertake extensive analysis and discussions with our members to determine the impact on cost and competitiveness for American agriculture.”
NGFA members with questions or comments on the merger can contact Max Fisher, NGFA’s Chief Economist and Treasurer, at mfisher@ngfa.org or (913) 449-0140.