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Fertilizer industry concerned about rail merger

The President and CEO of The Fertilizer Institute has concerns about the proposed Union Pacific-Norfolk Southern railroad merger.

Corey Rosenbusch tells Brownfield they are studying the proposal and hoping that the merger would not mean a reduction in service. “About 60% of all fertilizer tons in this country move via rail, and in some cases, some of the distribution networks are captive to a single railroad today.”

Rosenbusch says past mergers have led to additional challenges and costs. “We are very concerned as we go through this review process that we are going to be captive to fewer options and that any challenges with service are just going to be really highlighted with one less rail carrier to work with.”

Rosenbusch would also like to see ammonia shipments go back to railroads, where liability concerns have effectively eliminated ammonia from rail and shifted it to trucks, increasing transportation costs 300%. “We need to make sure we’re still able to ship those important nutrients on rail, and whether that’s coming in via short line or reciprocal switching among the Class I railroads, those need to be gauranteed as the STP reviews this potential merger.”

Rosenbusch says he hopes the Surface Transportation Board takes a very close look at the merger proposal, and says if approved, he would like to see conditions that guarantee continued service.

Audio: Corey Rosenbusch with The Fertilizer Institute discusses his concerns about the potential Union Pacific-Norfolk Southern railway merger with Brownfield’s Larry Lee