CPKC: The UP-NS Merger Is Not in the Public Interest
Written by David C. Lester, Editor-in-Chief
Photo courtesy CPKC
CALGARY –– To express its concerns about the proposed UP+NS merger, CPKC has established a web page warning of the impact of the possible combination and also argues that CP+KCS to form CPKC was a necessary merger.
The CPKC web page expressing opposition to the merger begins with this opening salvo:
“Union Pacific and Norfolk Southern propose to merge the largest Class 1 railroad in America with the fourth largest. The two merging railroads already have extensive access to vast markets. The two railroads propose to combine to form the Union Pacific Transcontinental Railroad, or UP Transcon.
“The UP-NS mega-merger is unnecessary and will dominate rail transportation markets, reducing rail customer optionality in ways that cannot be undone. A UP Transcon will radically and permanently change the nation’s rail network.
“On its own, the combination of UP and NS at this time would pose unprecedented and far-reaching risks to customers, rail employees and the broader supply chain. A UP Transcon would control approximately 40% of the U.S. freight rail traffic and have unrivaled leverage that would reduce the bargaining power of rail customers.
“These risks would be magnified by the inevitable follow-on rail industry consolidation.
“It doesn’t have to be this way. Collaboration among the railroads without mergers in high-density east-west transcontinental traffic lanes can achieve the kinds of benefits UP and NS say they are pursuing by merging.”
For more information about CPKC’s comments on the proposed UP+NS merger, check out the CPKC web page focused on this.
