Michigan’s more than 3,000 miles of freight rail are a critical link for manufacturers, farmers and businesses across the state. A merger between Union Pacific (UP) and Norfolk Southern (NS), two of the nation’s largest freight railways, could disrupt this balance.
Attorney General Dana Nessel joined more than 20 attorneys general in filing an intent to participate in the federal review of the proposed merger. Michiganders should be grateful for AG Nessel’s and the STB’s continued oversight and skepticism.
The Surface Transportation Board (STB) conditionally accepted the revised merger application, making it clear that additional information is needed before the proposal can be fully evaluated. This is good news.
Yet, UP CEO Jim Vena was nonchalant when asked about stakeholders’ concerns about pricing and competition. It’s notable that he didn’t want to provide specifics given that UP and NS have already failed twice at providing sufficient information about their merger.
Michigan’s retailers and workers depend on reliable and competitive freight rail, and murky details are unacceptable. A merger of this size raises important concerns about rising costs, employment cuts and operational changes, and these stakeholders deserve clear answers.
UP and NS need to demonstrate that they can fulfill their promises and serve the public interest. Until then, businesses must remain vigilant about what this consolidation could mean in practice.
I am glad that Attorney General Nessel will be fighting for Michigan and that she will ensure this proposal is judged on its real-world impact – not empty promises.
Scott Hayden
