Union Pacific and Norfolk Southern say they will file their formal merger application Dec. 19 with the Surface Transportation Board, detailing their historic proposal for the first transcontinental railroad.
“The comprehensive application will detail how the end-to-end combination will enhance competition and deliver broad public benefits for America that strengthen our economy and protect union jobs,” UP (NYSE: UNP) and NS (NYSE: NSC) said in a release.
The acquisition of NS by UP would create a coast-to-coast network with 53,000 miles of track in 43 states. The companies say the single-line routing will shave as much as two days’ transit time for freight moving through congested interchange hubs such as Chicago and St. Louis compared to the handoffs of traffic from railroad to railroad. They claim the streamlining means less paperwork and lower costs for shippers.
But the deal has been opposed by some shippers who say they’ll have fewer options to ship by rail, and warn of operational meltdowns that followed past mergers.
The full application expected to run to 4,000 pages will also be posted at up-nstranscontinental.com. The partners have scheduled a call with analysts early Friday morning to discuss the filing.
The filing kicks off a 30-day review by the STB to check that the application has been properly completed. The board then accepts the application by publishing a notice in the Federal Register, or serves a rejecting decision. Upon acceptance, the agency will accept comments on the filing for 45 days, and responsive applications for relief or in lieu of the primary application, for 90 days. After that, the STB commences official review of the merger, a process that could take a year or longer.
The STB has posted merger resources here.
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Find more articles by Stuart Chirls here.
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