BNSF asks STB to review Union Pacific-Southern Pacific merger conditions

BNSF Railway yesterday announced it petitioned the Surface Transportation Board to request an immediate review and enforcement of conditions imposed during the Union Pacific Railroad and Southern Pacific Railroad merger nearly 30 years ago.

BNSF's petition seeks to address UP’s "longstanding pattern of obstructive conduct, which has eroded competition and harmed customers," BNSF officials said in a press release.

BNSF alleges that since the UP-SP merger in 1996, UP has resisted efforts to preserve competitive rail conditions set by the STB to protect shippers. BNSF has tried to uphold the STB-established conditions through oversight, but UP's "obstruction" left customers with fewer service options than before the merger, according to BNSF.

"With UP now proposing another unprecedented merger, this time with Norfolk Southern, the stakes for shippers nationwide could not be higher,” said BNSF Executive Vice President and Chief Legal Officer Jill Mulligan. “Before considering any new consolidation, we ask the board to ensure the commitments made during the UP-SP merger are honored, and that competition is, at a minimum, preserved as required under the prior merger standards.”

In its petition, BNSF is asking the STB to:
• review the implementation of UP/SP merger conditions;
• enforce the rights granted to BNSF to maintain competitive access for shippers; and
• modify conditions as necessary to prevent further harm and uphold the public interest.

BNSF also asked the board to enter a procedural schedule allowing all parties to fully develop the record for the board’s review. 

In response to BNSF's petition, UP issued the following statement: "Union Pacific has granted BNSF access on about 85% of their requests over the last 15 years, providing significant opportunities for competition, while ensuring customers have options. In the few cases taken to the Surface Transportation Board, BNSF was asking for more than was agreed upon."