STB denies motions seeking summary denial of UP-NS merger

The Surface Transportation Board (STB) in a Sept. 18 decision denied several motions that sought summary denial of the revised major merger application filed by Union Pacific Railroad and Norfolk Southern Railway, allowing the application review proceedings to continue.

The decision does not prevent the parties from renewing any arguments in the motions, nor does it reflect any determination from the board on those merits, STB officials said in a press release.

On Aug. 6, the STB received three motions for summary denial of the UP-NS merger application, citing a failure to present a prima facie case. The motions were filed by BNSF Railway, CSX and a coalition of shipper associations comprising the American Chemistry Council (ACC), American Fuel & Petrochemical Manufacturers, the Alliance for Chemical Distribution, the National Industrial Transportation League and the Fertilizer Institute.

"While the motions and related comments raise important questions and issues, the board determined that additional evidence and argument will aid its decision-making in this consequential transaction of first impression," STB officials said.

The STB guided BNSF, CSX and the coalition to renew their arguments on the merits of the proposed transaction in their opening comments, which are due by Nov. 18. Responses to comments from UP-NS are due by Feb. 16, 2027.

Although the decision was unanimous, board member Richard Kloster noted that the motions to dismiss raised "significant, compelling arguments" that UP-NS will need to address in detail.

In a statement on the motions' denial, the ACC spotlighted Kloster's comments.

"Notably, in a separate concurring statement, one board member stressed that the applicants still have 'a long way to go' to demonstrate that the merger is in the public interest and raised concerns about the depth and transparency of the application as well as the lack of serious competitive enhancements proposed by the applicants," ACC officials said. "We will continue to stress to the STB that a healthy freight rail network depends on competition and customer choice, not increased market concentration and monopoly power."