rail

Canadian National Calls for Rejection of Revised UP-NS Merger Filing

Canadian National is pushing back against Union Pacific and Norfolk Southern's amended merger application, telling the Surface Transportation Board the revised submission still lacks critical regulatory information.

In a Monday filing, CN argued the carriers have failed to address most deficiencies identified when the STB rejected the initial proposal in January. The resubmission provided only the complete merger agreement while omitting forward-looking market share data, deal termination details, and analysis of a St. Louis terminal railway critical to rail traffic interchange.

CN took particular issue with the Committed Gateway Pricing program, the applicants' primary competitive remedy. The Montreal-based carrier characterized it as temporary and limited, covering less than 1% of traffic. The program excludes vehicles, intermodal shipments, and unit trains. CN also warned the program could raise shipping costs for many customers while providing no meaningful competitive enhancement that meets the STB's merger approval standards.