Peace Garden News

Senators John Hoeven (R-N.D.) and Amy Klobuchar (D-Minn.) have led a bipartisan group urging the Surface Transportation Board (STB) to thoroughly examine the proposed merger between Union Pacific Railroad (UP) and Norfolk Southern Railway (NS). In a letter addressed to STB Chairman Patrick Fuchs, Vice Chair Michelle Schultz, and Member Karen Hedlund, the senators emphasized concerns about potential disruptions in U.S. rail service if the merger proceeds.

The letter highlighted that many agricultural producers already face limited access to rail services and could be further affected by reduced competition. The senators stated: “The STBs post-2001 ‘Major Rail Consolidation Procedures’ were adopted specifically to place heightened emphasis on whether Class I railroad mergers enhance, rather than merely preserve, competition… The proposed UP/NS merger will be the first to come before the Board under these rules, and it is essential that you establish a strong precedent and apply these heightened standards in the way they were intended,” wrote the senators. “If approved, a combined UP/NS would handle more than 40 percent of all U.S. freight rail traffic… a transcontinental system spanning 50,000 route miles across 43 states. Service interruptions of this magnitude could have severe consequences, especially for agricultural producers. Time-sensitive shipments during harvest could be delayed or spoiled, export windows could be missed, and access to global markets could be sharply reduced."

They concluded: “We look forward to working with you to ensure the STB continues to promote an efficient, competitive, and economically viable freight rail network that serves the public interest.”

The initiative was co-signed by several other senators from both parties including Tim Sheehy (R-Mont.), Martin Heinrich (D-N.M.), Bill Cassidy (R-La.), Tina Smith (D-Minn.), Steve Daines (R-Mont.), Raphael Warnock (D-Ga.), Roger Marshall (R-Kan.), Patty Murray (D-Wash.), Mike Rounds (R-S.D.), Ruben Gallego (D-Ariz.), Roger Wicker (R-Miss.), Tammy Baldwin (D-Wisc.), Jim Banks (R-Ind.), Tammy Duckworth (D-Ill.), Joni Ernst (R-Iowa), and Dick Durbin (D-Ill.).

A broad range of organizations have expressed support for this effort. Endorsements came from groups representing agriculture, transportation, chemical distribution, business associations, farm bureaus, grain growers and dealers as well as state trade offices.