BNSF CEO: Rail merger still a “significant threat” to economy, consumers

At least one rival railroad is doubling down on its opposition to the transcontinental merger of Union Pacific and Norfolk Southern after the companies filed their former application with federal regulators Friday.

“While we are still reviewing the [Surface Transportation Board] filing and will have more to say soon, what we have seen so far does not change BNSF’s opposition to the proposed merger,” said Chief Executive Katie Farmer, in a statement. “The transaction poses a significant threat to the U.S. economy and the American consumer through its long-term competitive harms. It would leave shippers with fewer options – driving higher rates and ultimately higher prices for consumers. 

“This didn’t begin with customers asking for this merger, and the claimed public benefits appear to accrue primarily to shareholders. Past mergers demonstrate the risk of serious service failures with destructive impacts to customers, the U.S. rail network and the American economy.”

Both UP (NYSE: UNP) and NS (NYSE: NSC) say the tie-up will speed freight across their network by eliminating handoffs between railroads at busy interchanges such as Chicago and St. Louis. The merger will improve operations and lower costs for shippers who will only have to deal with paperwork for one railroad.