All politics is local – unless it’s transcontinental.
Union Pacific and Norfolk Southern won the backing of Democratic congressmen from two Deep South states where they operate for their proposed coast-to-coast rail merger.
Calling rail freight “vital to our states and the country’s economy,” Bennie Thompson of Mississippi, and Troy Carter and Cleo Fields of Louisiana in a letter urged Surface Transportation Board Chairman Patrick Fuchs to conduct a careful review that will help lead to “a more efficient, reliable, and competitive transportation network for our country.”
Headquartered in Atlanta, NS (NYSE: NSC) operates in both states while Omaha-based UP’s (NYSE: UNP) eastern terminus is in New Orleans.
“In our detailed discussions with Union Pacific and Norfolk Southern, we have learned that the proposed merger could offer a unique opportunity to strengthen the newly combined company’s current rail network and deliver tangible benefits for shippers, consumers, and communities,” the Congressmen said in the letter.
Carter’s support is important, as he is a member of the House Committee on Energy & Commerce, which legislates on interstate and foreign commerce, and also oversees the Department of Transportation.
The letter comes weeks after attorneys general from a number of red states backed the merger.
The railroads anticipate filing their formal merger application Dec. 19.
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Find more articles by Stuart Chirls here.
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