American Chemistry Council Sends Letter to POTUS 47 Sharing Concerns About UP+NS

WASHINGTON, D.C.–– The American Chemistry Council is not in favor of the proposed UP+NS merger and sent a letter about it to POTUS 47.

The American Chemistry Council’s (ACC) letter signed by 40 chemical manufacturing CEOs asked POTUS 47 and federal regulators to closely scrutinize the proposed merger between Union Pacific (UP) and Norfolk Southern (NS) – the largest rail merger to ever be reviewed by the Surface Transportation Board (STB).

If UP+NS is approved, it would create “a huge concentration of market power in an industry already dominated by just a few U.S. railroads,” according to the ACC. The letter goes on to say that “fewer railroads will mean fewer transportation options, and the merger threatens to make our U.S. manufacturing sites less competitive with the rest of the world.”

The letter adds that the transcontinental railroad created by UP+NS “would control almost half of the rail traffic in the U.S. and have outsized control over the nation’s supply chain.”

The CEOs cite major problems from past rail mergers such as increased costs, severe service disruptions and “great harm to the economy and supply chain.” The Council is also concerned about reaction to the merger, which could result in another transcontinental merger, “creating a nationwide railroad duopoly.”

Chris Jahn, President and CEO of the ACC said “the chemical industry is a cornerstone of American manufacturing and global trade, [and] our facilities require dependable, competitive rail service to deliver essential materials across the country.”

Jahn went on to explain that “President Trump has made real progress rebuilding American manufacturing. Let’s not let a monopoly undo it. We need a better deal – one that enhances competition between railroads, lowers costs, grows jobs, and strengthens America.”

The ACC, along with the companies they represent, is “calling on the STB to closely adhere to its own merger standards and reject any deal that fails to substantially enhance rail-to-rail competition and improve service.”