Lates News

According to reports, the American Freight Railroad Customer Association is demanding that regulatory agencies set strict conditions or block the $85 billion merger of Union Pacific and Norfolk Southern. Reports indicate that seven shipping organizations have expressed concerns about the increased power of the merged companies to raise prices or reduce service levels. Union Pacific stated that it has negotiated with over a hundred customers on low-cost railroad options and will provide details to stakeholders in the documents it submits to the Surface Transportation Board of the United States. The combined enterprise is estimated to be valued at $250 billion after merger, becoming the first freight railroad operator in the United States to cover both coasts, releasing approximately $2.75 billion in synergies annually. The union representing the relevant employees has already expressed opposition to the merger and plans to oppose it in person during discussions at the Surface Transportation Board of the United States.