Rail Customer Coalition letter to STB presents various issues relating to proposed Union Pacific-Norfolk Southern merger

Summary

The Rail Customer Coalition (RCC), representing manufacturing, energy and agricultural interests, sent a letter to the Surface Transportation Board (STB) outlining major concerns about the proposed $85 billion Union Pacific–Norfolk Southern merger. The deal would create the first U.S. transcontinental railroad, linking roughly 50,000 route miles across 43 states and about 100 ports.

The RCC warns the merger risks reduced competition, poorer service, higher costs and supply‑chain disruption. It urges the STB — reviewing the transaction under its new merger rules that require proof of public benefit and enhanced competition — to conduct a rigorous analysis and take meaningful steps to protect shippers and competition. Other shipper groups, including the Freight Rail Customer Alliance and the American Chemistry Council, have expressed similar opposition. Union Pacific, meanwhile, says the combination will speed single‑line service, lower costs and improve reliability.

Key Points

The proposed merger would form the nation’s first transcontinental railroad, connecting ~50,000 route miles across 43 states and about 100 ports.
RCC argues further consolidation would reduce competition — four Class I railroads already move over 90% of freight — and may lead to worse service, higher rates and job losses.
The STB is reviewing the deal under new merger guidelines that require showing enhanced competition and public benefit; RCC sees this as a critical test of those rules.
Shipper groups (RCC, FRCA, ACC) cite past mergers as evidence that consolidation often results in degraded service and higher fees rather than benefits passed to customers.
Union Pacific claims the merger will enable single‑line routes, faster transit, lower per‑mile costs and improved reliability that could make rail more competitive with road haulage.

Context and relevance

This merger would be one of the largest in U.S. rail history and could reshape freight markets, pricing and service options nationwide. The STB’s decision will set a precedent under its updated merger framework — whether regulators prioritise blocking anti‑competitive consolidation or approve complex remedies to preserve competition and service. Shippers, logistics providers and supply‑chain managers should watch closely: changes in rail market structure affect modal choice, cost base and inventory strategies across many industries.

Why should I read this?

Short version: if your business moves stuff by rail — or relies on suppliers who do — this is potentially game changing. The RCC letter flags real risks (higher costs, worse service, fewer options) and signals heavy shipper pushback. The STB review will shape how aggressive regulators are about stopping or conditioning big rail deals. Worth a five‑minute read now so you’re not scrambling later.