AFBF: UP–NS Merger Could Harm Rural Shippers

A potential merger between Union Pacific and Norfolk Southern railroads would create the First Coast-to-Coast rail line spanning 50,000 route miles across 43 states. American Farm Bureau Federation Economist Danny Munch shares more. In this three-part series,

“The railroads submit a proposal to the Surface Transportation Board, which is the agency tasked with regulating railroads, and then they go through an approval process with the Surface Transportation Board, where the Surface Transportation Board will basically go through see any sort of market disruptions. They'll evaluate public input, see if it's really in the public interest for the merger to go through. Originally, at the end of last year, the railroads submitted their proposal, and it was denied by a service transportation board because it was incomplete. It didn't have all the market information necessary.

"The railroads filed intent in February and are expected to submit a formal application this month. Munch explains what happens next in the approval process.

"There'll be a public comment period where stakeholders, including Farm Bureau, can submit comments to the Surface Transportation Board. And then ultimately, I think sometime during 2027, they'll either approve or deny the merger. Rail customer groups like the American Farm Bureau Federation, we strongly oppose the merger. We think that it will lessen competition, increase transportation rates, and put further burdens on rural shippers.”

AFBF’s, Danny Munch.