BNSF CEO Criticizes Union Pacific-Norfolk Southern Merger Filing
BNSF Railway's President and Chief Executive, Katie Farmer, criticized the latest regulatory filing by Union Pacific (UNP) and Norfolk Southern (NSC) regarding their proposed merger. She argued that despite additional information submitted to the Surface Transportation Board (STB), the core of the proposal still fails to demonstrate how combining two major railroads would preserve or enhance competition as required under STB rules. Farmer highlighted concerns over anticompetitive impacts, noting that a combined UP-NS entity could control up to 50% market share in certain corridors. The merged company is expected to handle about 37% of North American rail traffic, with an additional operating agreement with Canadian National (CNI) adding another 13%. Farmer also dismissed the proposed Committed Gateway Pricing as insufficient and short-lived. The merger faces scrutiny over its potential impact on pricing for shippers and consumers. BNSF argues that it would reduce competitive options in rail freight, raise rates, and harm the broader supply chain.
Topics: competition policy mergers and acquisitions rail industry