The Fertilizer Institute (TFI) today released the following statement in response to the submittal of an application with the Surface Transportation Board requesting approval of a merger between the Union Pacific and Norfolk Southern railroads.
“The fertilizer industry relies heavily on rail, and many shippers already operate with limited transportation options, increasing costs, and continued service challenges, all with a “take-it-or-leave-it” approach from railroads. Our priority is a rail system that provides reliable service and a balanced relationship between carriers and carload shippers, with accountability for systemic rail service failures and a rate review process that is efficient, timely, and economical.
“While we are still reviewing today’s STB filing, it is difficult to see how any coast-to-coast merger would improve this imbalance or meet the standard set out in the Surface Transportation Board’s merger rules. Today railroads hold all the cards, and larger railroads only give carriers a bigger deck. Now that UP and NS have submitted their merger application, we urge the Board to make the merger’s impact on carload shippers, including fertilizer and agriculture, a priority during the review process.
“The potential for this merger makes needed rail policy reforms to reset the balance between railroads and carload shippers even more critical.”
