Rail merger threatens America’s future
by Chris Jahn · The Washington TimesOPINION:
The story of America’s climb to the summit of the global economy is inseparable from the story of railroads. Long before modern highways and air cargo networks, railroads connected distant regions, opened markets and moved the raw materials that powered growth. During the Industrial Revolution — one of the most consequential chapters in U.S. history — freight rail helped transform the nation into an industrial leader, supporting the rise of manufacturing.
That legacy still matters today. America’s economy runs on chemistry — from the medicines we take to the cars we drive, chemical manufacturing powers nearly every aspect of modern life. Rail isn’t just a logistical concern for the chemical industry — it’s a lifeline, carrying the essential inputs and finished products that underpin American agriculture, manufacturing and energy production.
But as with any major sector of the U.S. economy, the benefits of a strong freight rail system depend on an essential ingredient: competition. Right now, access to competitive and reliable freight rail service is being threatened by a merger that would give rise to a coast-to-coast rail monopoly.
The proposed merger between Union Pacific (UP) and Norfolk Southern (NS) would fundamentally reshape the freight rail landscape — and not in a good way. Combined, the two railroads would control nearly half of all U.S. rail traffic, creating an unprecedented concentration of market power in a system that depends on competitive balance to function properly.
Consolidating so much traffic under a single operator sets up a single point of failure at a time when policymakers are focused on strong supply chains, affordability and security.
For America’s future, the implications are straightforward and serious. Less competition in the freight rail industry means higher costs, fewer options for shippers and increased pressure on supply chains. Those impacts would ripple through the broader economy, harming industries and raising prices for goods that rely on affordable and dependable rail service.
The consequences are also big when it comes to jobs. When transportation costs rise or service worsens, businesses pull back, delay investment or shift production — all putting American jobs at risk.
The Surface Transportation Board (STB) is the only federal agency with the authority to review this deal. It is the only entity between this merger and lasting harm that could reverberate throughout the economy.
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History offers a clear warning. The 1996 Union PacificSouthern Pacific merger led to severe congestion, widespread service failures and network paralysis that disrupted supply chains nationwide. The fallout was so significant that the STB imposed a moratorium on major rail mergers and rewrote its rules to protect competition and customers.
The Board’s updated merger rules set a clear standard: any proposed rail merger must serve the public interest. To meet this standard, the transaction must enhance freight rail competition, not diminish it.
The UP-NS merger fails this test. Rather than expanding competitive rail options, it would reduce them.
With so much at stake, it should come as no surprise that this mega rail merger proposal is setting off alarm bells across the country. A broad coalition representing key parts of the economy — the Stop the Rail Merger Coalition — has come together to oppose the deal, bringing together farmers, manufacturers, railroads, labor groups and trade associations such as the American Chemistry Council.
More than 100 state and federal policy makers, including attorneys general and agriculture secretaries, have also raised concerns about the potential negative impacts of the merger.
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Public opinion points in the same direction. Nearly three-quarters of Americans oppose the merger after learning about its impacts. Most voters believe it would increase shipping costs, raise prices on everyday goods and hurt jobs. Americans know a bad deal when they see one.
There is a better path forward. Railroads do not need to merge to improve efficiency or service for their customers. Recent cooperative efforts, including partnerships between BNSF and CSX, have demonstrated that coordination can enhance network performance without the disruption and risks of a costly merger.
The UP-NS merger would move the country in the wrong direction. It concentrates power, weakens competition, and puts jobs, supply chains, and America’s future at risk.
The STB’s mandate is clear. Its own rules require mergers to serve the public interest by enhancing competition. This one does not and must be rejected.
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• Chris Jahn is the President and CEO of the American Chemistry Council.