The potential Union Pacific merger risks upsetting America’s rail industry
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In other words, regulators are being asked to accept sweeping claims with limited substantiation.
The STB is right to push back on the “just trust us” approach. Internal company analyses can reveal whether executives expect service disruptions, pricing power, or integration challenges that could undermine supply chains.
They can also test whether the merger’s benefits are actually realistic. This level of scrutiny is basic due diligence, particularly in an industry where reduced competition can have economy-wide consequences, and especially when the merging railroads claim that this transaction will change American railroading for the next hundred years.
At a time when businesses and consumers are still grappling with inflation and the cost of goods, it is hard to overstate the risks of this mega-merger.
As this review proceeds, the STB should ensure that all stakeholders have the information needed to assess the merger’s true impact and the time to be heard, resisting pressure to rubber-stamp a deal this consequential for the rail industry and American consumers. Anything less risks locking in higher costs and fewer choices for years to come.
The American economy runs on rail. The STB should make sure it stays on track.
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