GOP lawmakers urge STB: Identify genuine advantages or deny rail merger

Republican Lawmakers Call for In-Depth Review of Union Pacific and Norfolk Southern Merger

Republican legislators in Congress have requested that the Surface Transportation Board (STB) carefully scrutinize the proposed merger between Union Pacific and Norfolk Southern. Their primary concern is that the deal should deliver meaningful advantages for freight customers.

Representative Dusty Johnson of South Dakota sent a letter to STB Chairman Patrick Fuchs and board members Michelle Schultz and Karen Hedlund, urging them to perform a detailed and exhaustive evaluation of the merger. Johnson emphasized that the review should ensure the merger promotes competition and serves the broader public good.

Signed by 46 members of Congress, the letter highlights that the responsibility to prove clear, significant, and measurable benefits for American manufacturers, farmers, the energy sector, and consumers—who all depend on a robust and competitive rail freight system—lies with the railroads seeking the merger.

The lawmakers stated, “If these benefits cannot be clearly demonstrated, the Board should not approve the merger.”

Johnson, who serves on the House Agriculture and Transportation Committees, noted that many officials are hearing concerns about the merger proposal from Union Pacific (UNP) and Norfolk Southern (NSC). He pointed out the lack of strong commitments to foster competition and prevent service disruptions, urging the STB to thoroughly assess the potential risks and determine if the merger aligns with public interests.

The STB previously rejected the initial merger application, citing incomplete information. The railroads have announced plans to submit a revised application by March.

Back in November, numerous Republican state legislators warned the STB that the merger could reduce competition and drive up costs. Attorneys general from nine Republican-led states also raised concerns about possible national security implications.

This letter comes at a time when shippers and other interested parties are increasingly voicing their opposition to the merger, which would create the first coast-to-coast freight rail network, spanning over 50,000 miles across 43 states.

The correspondence also referenced updated, stricter merger regulations introduced in the early 2000s. These rules require that any consolidation not only maintain but actively enhance competition—a standard that has yet to be tested, leaving uncertainty about how the STB will interpret and enforce it.

Johnson wrote, “The new guidelines place a heavy burden on merging companies to prove that their deal will, among other things, improve competition for rail customers, guarantee dependable service, and serve the public interest.”

Additional Insights and Industry Reactions

It has been reported that the STB has gathered more data in preparation for this merger review than for any previous case. Experts from the Massachusetts Institute of Technology have been enlisted to help analyze over 100 million data points related to the transaction.