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Grain groups call for Union Pacific-Norfolk Southern merger to be rejected

U.S. grain shippers say two major rail companies have failed to meet minimum standards in their revised application to merge.

Soy Transportation Coalition executive director Mike Steenhoek tells Brownfield Union Pacific and Norfolk Southern railroads recently revised their proposals for the Surface Transportation Board.

“Will this actually enhance competition?” he says is the question. “There are a lot of people who argue, how can a consolidation of this size and scale increase competitive pressure against the remaining railroads?”

The National Feed and Grain Association this week filed a petition for the board to reject the proposal, saying it falls short of the policies and directives required by current regulations.

Several other organizations of the Stop the Rail Merger Coalition, including The Fertilizer Institute, have submitted similar objections to the $85 billion merger.

Steenhoek says the comment and review process could take another year before any decision is made.