The Chairman of the House Transportation and Infrastructure Committee, Sam Graves (R-MO), has issued a statement regarding the merger application between Union Pacific Railroad and Norfolk Southern Railroad currently under review by the Surface Transportation Board (STB).
Graves noted that the proposed merger would result in "America’s first true transcontinental railroad." He referenced commitments made by both companies to invest in a more efficient rail network, improve safety, and boost competition. "Their promised commitment to significantly invest in a more efficient rail network, increase safety, and enhance competition is encouraging. However, with a merger of this size I want to ensure the STB is deliberative in assessing what potential effects this would have on the system as a whole," Graves said.
He also highlighted that this would be the first major rail consolidation reviewed under new STB rules. The review process will require careful consideration from regulators and stakeholders about how the merger could affect various aspects of rail service. "This merger will be the first to occur under the STB’s newer rules for major rail consolidations. It will take time for the STB, stakeholders, and policymakers to analyze the application’s potential effects on intermodal and intramodal competition, customer service, and rail employees. I am confident in the STB’s processes and expertise to provide a thorough review in making their final determination," he added.
No timeline has been set for when a decision might be reached on the merger proposal.
