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UP, NS Say Enhanced Merger Terms Strengthen Competition Case

Union Pacific and Norfolk Southern executives expressed confidence their latest regulatory filing addresses Surface Transportation Board concerns about competitive impacts from their proposed merger. During remarks at the FreightWaves TrainsPro symposium in Chattanooga, UP CEO Jim Vena argued that restricting end-to-end service would ultimately harm consumers through higher prices. NS CEO Mark George acknowledged competition concerns alone would not satisfy regulators, but contended newly added provisions exceed previous merger standards. The railroads submitted a 412-page supplemental filing Monday, their second this month responding to STB questions. The filing expands the Committed Gateway Pricing concept by doubling eligible shippers and adding bulk unit train moves previously excluded. Vena said customers requested the expansion to strengthen negotiations with competing carriers. George characterized the revision as a significant competitive enhancement, stating the offer exceeds concessions made in prior Class I rail mergers.