Rail

Union Pacific CEO Walks Back Rate Threat Over Merger Opposition

Union Pacific CEO Jim Vena said remarks threatening to raise rates for shippers opposing a proposed merger with Norfolk Southern were intended as humor, not a serious warning.

Vena made the comments at the Southwest Association of Rail Shippers annual conference in Houston in March. In recorded remarks, he stated Union Pacific would increase rates by three to four percent for shippers opposing "a seamless railroad" if the merger did not proceed.

Canadian Pacific Kansas City pushed to release the video publicly, contending the threat had discouraged shipper participation in regulatory proceedings. The Surface Transportation Board agreed and ordered disclosure as part of merger evaluation.

Vena characterized the statement to FreightWaves as "a little humor" Thursday, saying opponents of the deal misrepresented his intentions. He emphasized that supply chain costs would decrease with a merged carrier.