The officials from Montana, Iowa, Kansas, Florida, North Dakota, South Dakota, and Tennessee contend that the revised application fails to demonstrate any public interest benefit. In their letter to the board, they warn that the rail industry is already prospering financially and that creating a singular market behemoth would only exacerbate existing supply chain vulnerabilities. They emphasize that reduced routing options traditionally lead to higher freight costs for rural businesses that lack alternative transport methods.
In section Releases
Attorneys General Oppose Union Pacific and Norfolk Southern Merger
Seven state attorneys general have formally urged the Surface Transportation Board to reject the proposed merger between Union Pacific and Norfolk Southern. The coalition argues that consolidating these freight giants would stifle competition, squeeze profit margins for farmers, and inevitably drive up shipping costs for consumers across the country.
These concerns align with an ongoing antitrust lawsuit in the U.S. District Court for the District of Kansas. In that case, 13 farmers along with the Soloviev Group subsidiaries Weskan Grain and Colorado Pacific Railroad accuse Union Pacific and Kansas & Oklahoma Railroad of actively stifling competition to maintain control over westward grain shipments. The plaintiffs, represented by Ajamie LLP and Sharp Law LLP, argue that the defendants deliberately blocked a rehabilitated rail line to preserve their market dominance.
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