Three Democratic members of Congress are urging federal regulators to give careful consideration to the proposed merger between Union Pacific and Norfolk Southern, saying the deal could deliver benefits for shippers, consumers and communities if implemented properly.
U.S. Reps. Bennie Thompson of Mississippi, Troy Carter of Louisiana, and Cleo Fields of Louisiana submitted a letter to the Surface Transportation Board over the weekend as the agency reviews the merger of two of the nation’s largest freight railroads.
The lawmakers said freight rail is vital to the economy. They reiterated that any large-scale consolidation must receive scrutiny to avoid service disruptions, protect workers, and preserve competition.
“In our detailed discussions with Union Pacific and Norfolk Southern, we have learned that the proposed merger could offer a unique opportunity to strengthen the newly combined company’s current rail network and deliver tangible benefits for shippers, consumers and communities,” the lawmakers wrote.
The members also said Union Pacific has committed to improving safety, enhancing service, protecting workers, and investing in communities. They encouraged the Surface Transportation Board to weigh both economic and community impacts as it evaluates the proposal and to require transparency and accountability if the merger is approved.
The letter comes after Republican state officials made a recent statement backing the deal.
Last month, attorneys general from Nebraska, Georgia, and West Virginia asked federal regulators to approve the merger, arguing it would improve freight rail service nationwide and strengthen the rail network.
In their letter, the Republican attorneys general said the merger would bring over 50,000 miles of track under one system, connect ports across North America, and reduce delays in freight movement. They also said freight rail is more fuel efficient than trucking and could support job growth.
Support for the merger has divided Republican attorneys general.
Nine Republican attorneys general sent a separate letter to the Surface Transportation Board warning the deal could reduce competition, raise prices, and harm manufacturers and agricultural producers. That letter stopped short of calling for the merger to be blocked.
Union Pacific has said it plans to file its full application with the Surface Transportation Board soon and has argued the merger would advance the public interest while enhancing competition. Shareholders for both companies have already approved the transaction.
The federal review process will take at least one year. The Surface Transportation Board will decide whether the merger meets federal standards for rail transactions and whether it maintains competition in the freight rail market.
