Central ND News

Senators John Hoeven and Amy Klobuchar are leading a bipartisan group urging the Surface Transportation Board (STB) to thoroughly review the proposed merger between Union Pacific Railroad and Norfolk Southern Railway. In a letter addressed to STB Chairman Patrick Fuchs, Vice Chair Michelle Schultz, and Member Karen Hedlund, the senators expressed concerns about possible disruptions to U.S. rail service and emphasized the importance of analyzing how the merger could affect long-term competition in the railroad industry. The senators noted that many agricultural producers already have limited access to rail service.

“The STBs post-2001 ‘Major Rail Consolidation Procedures’ were adopted specifically to place heightened emphasis on whether Class I railroad mergers enhance, rather than merely preserve, competition… The proposed UP/NS merger will be the first to come before the Board under these rules, and it is essential that you establish a strong precedent and apply these heightened standards in the way they were intended,” wrote the senators. “If approved, a combined UP/NS would handle more than 40 percent of all U.S. freight rail traffic… a transcontinental system spanning 50,000 route miles across 43 states. Service interruptions of this magnitude could have severe consequences, especially for agricultural producers. Time-sensitive shipments during harvest could be delayed or spoiled, export windows could be missed, and access to global markets could be sharply reduced.

“We look forward to working with you to ensure the STB continues to promote an efficient, competitive, and economically viable freight rail network that serves the public interest,” concluded the senators.

The letter was also signed by Senators Tim Sheehy, Martin Heinrich, Bill Cassidy, Tina Smith, Steve Daines, Raphael Warnock, Roger Marshall, Patty Murray, Mike Rounds, Ruben Gallego, Roger Wicker, Tammy Baldwin, Jim Banks, Tammy Duckworth, Joni Ernst and Dick Durbin.

Several organizations have endorsed this effort. These include groups representing agriculture producers such as Agricultural Retailers Association (ARA), American Farm Bureau Federation (AFBF), National Farmers Union (NFU), North Dakota Grain Growers Association; industry coalitions like Alliance for Chemical Distribution (ACD), American Chemistry Council (ACC), National Industrial Transportation League (NITL); as well as regional chambers of commerce and trade offices including Greater North Dakota Chamber of Commerce and North Dakota Trade Office.