<div id="readability-page-1"><div> STB Faces Its Biggest Test: Must Stand Up for Competition, /PRNewswire/ -- The Rail Customer Coalition (RCC) today issued a stark warning regarding Union Pacific's formal application to merge with Norfolk Southern. <img src="https://imageproxy.pbkrs.com/https://mma.prnewswire.com/media/2849779/Rail_Customer_Coalition_Logo.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="280" height="266" original-src="https://imageproxy.pbkrs.com/https://mma.prnewswire.com/media/2849779/Rail_Customer_Coalition_Logo.jpg"/> While UP-NS would like to declare victory right out of the gate, the push back regarding the merger is building as it faces the most rigorous review in STB history.The proposed merger would mark the largest railroad consolidation in U.S. history and the most consequential case ever reviewed by the STB. It is an unprecedented test of the Board's updated merger standards that were adopted after previous mergers upended the rail network and crippled the national supply chain.The new standards require an application to clearly demonstrate how the merger will improve service and enhance rail-to-rail competition. The Union Pacific-Norfolk Southern application fails to meet that standard.Costly LegacyAmerican businesses are still paying the price for prior rail mergers. Today, just four companies control 90% of U.S. freight rail traffic. As a result, freight rail rates have soared more than 40% (inflation-adjusted) over the past two decades, while rail customers face frequent service disruptions.Sticker ShockIf approved, this deal would give a single railroad control over nearly half of all U.S. rail traffic. What little competition remains would be erased. A near monopoly power would be created and manufacturers, farmers, energy producers, and ultimately every American consumer would pay the price.This proposed merger is seven times larger than any previous merger. The $85 billion price tag for the merger will most likely be paid for by U.S. businesses and American consumers.Unnecessary and RiskyThe supposed benefits of the merger — improved service, efficiency, and network reach — can be achieved without creating a rail monopoly. Just look at the recent BNSF—CSX partnership, which expanded service through cooperation, not consolidation.Union Pacific has challenged the alleged benefits of previous mergers — most recently filing a lawsuit saying the merger between Canadian Pacific and Kansas City Southern was unnecessary and would reduce competition. Momentum ShiftingAs stakeholders look beyond UP's and NS's glowing press releases and promises, opposition continues to grow. A bipartisan group of 18 U.S. Senators recently urged the STB to scrutinize the merger, warning:&#34;Our producers already face limited competitive options for rail service. Further consolidation could compound these challenges by reducing routing flexibility, constraining network fluidity, increasing market power, and limiting access for both producers and processors.&#34;And nine Republican State Attorneys General, along with 54 Republican legislative leaders in 24 states have expressed similar concerns to the STB. Momentum has clearly turned against the merger. Competition or BustMore rail-to-rail competition is essential to lowering costs, strengthening supply chains, and supporting American jobs. The STB must apply the hard and costly lessons of past mergers and reject any deal that fails to enhance freight rail competition.Members of the RCC will carefully review the application filed today and will engage with the STB throughout its review process.Rail Customers React:&#34;Our industry supplies the tools that help growers protect their crops and stay productive, and we rely on a rail system that works. Competition in freight rail is essential for predictable service and a resilient supply chain. The STB should take a hard look at this proposal and ensure that this merger supports American agriculture rather than putting new pressure on farmers and the companies that serve them.&#34;- Terry Kippley, President and CEO, Council of Producers &amp; Distributors of Agrotechnology (CPDA)&#34;American refiners and petrochemical manufacturers need competitive, efficient and reliable rail networks to produce the affordable fuels and products Americans depend on every day. Unfortunately, decades of bad service and price increases in the wake of freight rail consolidation leave us and other carload shippers highly skeptical of this merger. Unless the Surface Transportation Board can demonstrate conclusively that it will enhance competition across all modes of transport — especially between railroads — this merger application should be denied.&#34;- Chet Thompson, President and CEO, American Fuel &amp; Petrochemical Manufacturers (AFPM) &#34;Farmers and ag retailers operate on razor-thin margins, so even a small, artificial cost increase can have a big impact. When rail service is dominated by just a few players, they hold the power to set terms that work for them—not for the shippers and customers who depend on rail to move agricultural commodities, fertilizer, ag chemicals, fuel, and other essential supplies. That imbalance drives up costs and threatens the reliability of our entire supply chain.&#34;- Daren Coppock, President &amp; CEO, Agricultural Retailers Association (ARA)&#34;Union Pacific and Norfolk Southern are trying to fast-track an unnecessary, unwanted, and potentially crippling merger that would create a coast-to-coast rail monopoly - one that puts imports ahead of American-made goods. At a time when the top concern for Americans is the cost of living and inflation, policymakers must stand with consumers and reject any deal that fails to promote competition over monopolies and drives prices even higher.&#34;- Chris Jahn, President &amp; CEO of the American Chemistry Council&#34;Businesses remain unconvinced this mega-merger will resolve the challenges shippers are already facing, including capacity constraints, high rates, and ongoing service issues. As the STB prepares to consider the proposal, the Alliance for Chemical Distribution encourages the board to conduct a rigorous and comprehensive evaluation of the proposal's merits. It's clear to those who use freight rail day in and day out that this proposal fails to enhance competition and serve the public's interest. ACD strongly opposes this merger proposal as it will expand monopolistic control of freight rail at the expense of America's critical chemical supply chain.&#34;- Eric R. Byer, President and CEO of Alliance for Chemical Distribution (ACD)&#34;Cement manufacturers, who provide the essential materials that constitute America's roads, bridges, water infrastructure, and so much more, rely heavily on an efficient rail service to get their products to construction sites across the country. The Surface Transportation Board must ensure the proposed merger will result in enhanced competition as it is required to do when considering mergers. The cement industry is concerned the merger could lead to higher costs and lower levels of service for shippers.&#34;- Mike Ireland, President and CEO, American Cement Association&#34;Any approval of the proposed rail merger must include strong, enforceable protections for captive shippers. The minerals industry depends on reliable, competitive rail service to supply the minerals that support American manufacturing, infrastructure, and energy security. Without safeguards, this merger risks further consolidation of market power in the freight rail network at the expense of industries that have no practical alternatives. We support a rail network that is efficient and resilient, but STB's decision should also guarantee that it is also fair.&#34;- Chris Greissing, President, Essential Minerals Association&#34;FRCA remains opposed to continued consolidation in the rail industry based on past merger experiences resulting in higher rates and degraded service. On behalf of its members, who ship largely via unit train and are served predominately by a single rail carrier, FRCA will be reviewing the proposed merger application on how it meets the new merger rules of being in the public interest and enhancing rail-to-rail competition. If a merger is approved by the STB, promised service improvements, reduced rates, and other competitive protections must be guaranteed for all shippers where the Board will effectively hold the railroad accountable for performance.&#34;- Ann Warner, Spokesperson, Freight Rail Customer Alliance&#34;NITL opposes further consolidation in the freight rail industry based on past merger experiences resulting in higher rates and degraded service. A combined UP-NS railroad would become the largest railroad in the United States with an estimated market share of 40% of all rail traffic. This warrants an extremely thorough review by the STB to ensure that this proposed merger would broadly serve the public interest if it is approved. It is critical that any approval would require meaningful enhancements of rail-to-rail competition for both intermodal and captive carload traffic. The promised benefits of improved service, lower rates, and competitive protections should be realized by shippers of all traffic types. In order to achieve this, the STB must require conditions that protect rail customers from increased market power and hold the railroads accountable for performance failures by providing effective remedies to make adversely affected shippers whole.&#34;- Nancy O'Liddy, Executive Director, National Industrial Transportation LeagueYou can find more reactions from RCC members here and from other industry groups here.About the Rail Customer CoalitionThe Rail Customer Coalition (RCC) is a large collection of trade associations representing a broad cross-section of manufacturing, agricultural, and energy industries that depend on the railroads to deliver reliable and affordable service so they can remain competitive in a global market. Their members are essential to a healthy U.S. economy, with operations and employees throughout the country – collectively providing more than 7 million jobs and producing more than $4.8 trillion in economic output.RCC members are major transportation stakeholders and the largest users of freight rail. They account for more than half of the total volume of cargo shipped by rail and generate more than three-quarters of the revenues collected by the railroads.Learn more at www.freightrailreform.comFollow us @RailCustomers <img width="12" height="12" src="https://imageproxy.pbkrs.com/https://edge.prnewswire.com/c/img/favicon.png/query-c2Q9MjAyNS0xMi0xOSZzbj1EQzUxNzc0?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://edge.prnewswire.com/c/img/favicon.png/query-c2Q9MjAyNS0xMi0xOSZzbj1EQzUxNzc0"/> View original content to download multimedia:https://www.prnewswire.com/news-releases/rail-customers-say-competition-must-come-first-in-upns-merger-review-302647055.htmlSOURCE Rail Customer Coalition</div></div>

The Rail Customer Coalition (RCC) has raised concerns about Union Pacific's application to merge with Norfolk Southern, warning it could create a near monopoly and harm competition. The merger, the largest in U.S. railroad history, faces rigorous review by the Surface Transportation Board (STB). Critics argue it will increase costs and reduce service quality. Bipartisan opposition is growing, with calls for the STB to reject the merger unless it enhances competition.

Rail Customers Say Competition Must Come First in UP-NS Merger Review