The National Grain and Feed Association is opposing the proposed merger between Union Pacific and Norfolk Southern Corporation, saying the updated application does not meet the Surface Transportation Board’s standards for major rail consolidations.
In an Aug. 13 filing with the Surface Transportation Board, NGFA asked the agency to reject the proposed merger. The filing responds to an updated application submitted by the companies July 27.
NGFA said the updated application does not satisfy the standards established under the STB’s Major Rail Consolidation Procedures of 2001. Under those procedures, railroad mergers are expected to preserve existing competition while also increasing and improving competition for customers.
The association said it has conducted a review of the proposed transaction over the past 13 months, including examination of the merger applications and feedback from its members regarding potential benefits and drawbacks.
NGFA said it has consistently sought evidence that the merger would provide tangible benefits for rail customers and the agricultural supply chain. The association also requested additional information from the applicants about how the transaction would improve competition and serve the public interest.
Following its review, the NGFA Board of Directors voted Aug. 13 to oppose the merger. The association said the updated application does not meet the threshold required under the 2001 procedures.
NGFA said it appreciates the applicants' efforts to address concerns raised during the review process but determined that the proposed transaction does not provide sufficient evidence of enhanced competition to warrant approval.
Source: National Grain and Feed Association, "NGFA asks STB to reject Union Pacific-Norfolk Southern merger"