The stakes are rising in the proposed reshaping of the U.S. railroad industry.
After Attorneys General from nine states warned about potential negative effects, their counterparts from the railroads’ home states are urging federal regulators to approve the historic merger of Union Pacific and Norfolk Southern.
The letter sent Friday to the Surface Transportation Board was signed by Mike Hilgers of Nebraska, home to UP’s (NYSE: UNP) Omaha head office; Chris Carr of Georgia, where NS (NYSE: NSC) is based in Atlanta and J.B. McCuskey of West Virginia, a major coal producer.
The extraordinary letter from the states’ top law enforcement officers is the latest public relations broadside in the controversial process to create the first freight-only coast-to-coast railroad.
“America’s freight rail system is the envy of the world,” the letter stated. “Our more than 140,000 miles of freight rail track power the nation’s vibrant economy, safely moving raw materials, helping farmers access distant markets and giving consumers easy and cost-effective access to goods from coast to coast. Freight rail is both economically efficient and environmentally sustainable.”
America’s freight rail ships more than six times as many ton-miles of freight each year as the 27 member-states of the European Union combined, the letter stated, quoting research data.
“America’s railways move more than 5,000 ton-miles of freight per person per year, which is 10 times the amount moved in Europe and 25 times the amount moved in Japan. This massive volume drives more than $230 billion of economic output and supports more than 750,000 good-paying jobs.”
The AGs added that while freight rail accounts for roughly 40% of the long-distance shipping in the United States, it accounts for less than 2% of transportation-related emissions.
The AGs also pointed out that President Trump has backed the merger.
“There simply is no better combination of economic vitality and environmental sustainability than freight rail. The merger of Union Pacific and Norfolk Southern will only further strengthen the efficiency, reliability, and effectiveness of our freight rail system,” the letter concluded.
The railroads expect to file their formal merger application with the STB by December.
Subscribe to FreightWaves’ Rail e-newsletter and get the latest insights on rail freight right in your inbox.
Find more articles by Stuart Chirls here.
Related coverage:
Rail merger no guarantee of growth: Analysts
Weekly rail freight lower but still ahead of 2024 for year
Rail merger could raise prices, hurt US ability to compete, say GOP legislators
Freight Fraud Symposium
Double brokering. AI deepfakes. Identity theft. Freight fraud is an existential threat to the industry. Get ahead of it.
Supply Chain AI Symposium
Past the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
Future of Rail Symposium
Reshoring is rewriting freight demand. Join shippers, rail executives, and government officials to shape the next decade.
Double brokering. AI deepfakes. Identity theft. Freight fraud is an existential threat to the industry. Get ahead of it.
Rock & Roll Hall of Fame • Cleveland, OH Register NowPast the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
The Old Post Office • Chicago, IL Register NowReshoring is rewriting freight demand. Join shippers, rail executives, and government officials to shape the next decade.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now