From the Editor — Union Pacific-Norfolk Southern: More time and what it will tell

With the proposed Union Pacific Railroad-Norfolk Southern Railway merger, time isn’t necessarily on anybody’s side. But it’s clear the most mega of rail megamergers is going to take more time to review.

On May 28, the Surface Transportation Board accepted the amended UP-NS merger application but also held the primary proceeding, the related Peoria & Pekin Union Railway application and the environmental review in abeyance pending supplemental information that UP and NS must submit by July 27.

The STB ordered the railroads to provide supplemental information related to the following topics: enhanced competition; access for 2-to-1 and 3-to-2 shippers; public benefits: diversion analysis; service assurance plan; issues involving gateways and car supply; market share projections; downstream merger impacts; passenger rail; and workpapers.

“This is an acceptance, but [it] can be read as a setback for the applicants or perhaps a Pyrrhic victory,” independent transportation consultant and Progressive Railroading columnist Tony Hatch wrote in a May 28 message to his clients.

The “bareboned approach” UP and NS continued to take with the revised application — providing the most minimally detailed information possible — “sort of surprised” Hatch and three other merger observers who discussed the app during a May 15 online discussion hosted by RailTrends®, Hatch said.

The STB decision adds at least 60 days to the consideration process, plus whatever time the board would need to review the new information and establish a procedural schedule.

In a May 28 press release, UP-NS officials said they still expect the transaction to be completed by mid-2027.

Before the STB issued its decision and requested the supplemental information, Hatch said he believed it’d take longer for the board to reach a decision — maybe by late 2027 or early 2028.

One merger thing at a time: We’ll see what the STB says about the supplemental info on or around July 27, which, for those keeping score (er, time), would be two days shy of the day UP-NS announced their urge to merge a year ago.

Meanwhile, what the various stakeholders say about the new information could add more time to the review process. Will “still silent stakeholders,” notably shippers, be “emboldened to speak out now?” Hatch wondered in his May 28 message.

And how will STB define “enhanced competition”? Will conditions to the deal be imposed as a result?

Time will ... well ... you know.

Wheaton joins Progressive Railroading staff

Hazel Wheaton has joined the Progressive Railroading editorial team as associate editor.

Hazel has been an editor-in-chief, digital content editor and book editor for such Milwaukee-area publishing companies as Trusted Media Brands Inc. and Kalmbach Publishing Co., and she most recently served as a freelance writer and a book editor.

Hazel will work across all the rail group’s offerings — from our Daily News to RailPrime (our digital prescription offering dedicated to all things freight transportation) to the monthly print magazine to virtual events. She’ll also lead or help manage some of our awards programs. One example of such a program: this month’s Rail Mentor Awards, which was led and managed by Senior Associate Editor Bridget Dean.

We’re very glad Hazel is with us. Expect to hear from her, if you haven’t already, in the weeks ahead.