The chief executive of Union Pacific says he wasn’t serious when he threatened to raise rates for shippers that didn’t support UP’s merger with Norfolk Southern.
Vena, who frequently peppers his public comments with joking asides, characterized the comment made to a shippers group as “a little humor” in a message to FreightWaves Thursday over social media.
“Humor is good,” Vena said.
UP (NYSE: UNP) sought to keep confidential a video that captured Vena’s comments to the Southwest Association of Rail Shippers at its annual conference in Houston in March. Rival Canadian Pacific Kansas City (NYSE: CP) sought its public release, arguing that Vena’s remarks allegedly threatening higher rates for shippers opposing the merger had chilled participation in the regulatory proceeding. The Surface Transportation Board agreed and ordered its release as part of the merger evaluation process. UP released the video Thursday.
In concluding his talk, Vena said, “If we don’t do that [merge], Union Pacific will still be there. And if I stick around, which I probably will, I’ll probably increase everybody’s rates that said they didn’t want a seamless railroad by three or four extra percent to teach you a lesson. Thank you very much.”
Vena told FreightWaves he wasn’t making a threat, and that some in the industry opposed to the merger took the opportunity to make more of the remark than he intended.
“Supply chain costs will be less with a seamless railroad,” Vena said.
Subscribe to FreightWaves’ Rail e-newsletter and get the latest insights on rail freight right in your inbox.
Read more articles by Stuart Chirls here.
Read more:
STB orders Union Pacific to make alleged rate hike threat video public
Intermodal leads weekly gains as US rail traffic rises 3.5%, says AAR
CN 3Q profit rises 6% as freight revenue climbs
Schneider to shift eastern rail business to Norfolk Southern from CSX
