Nation’s First Seamless East–West Rail Network Moves Closer to Reality

Shareholders have overwhelmingly approved a merger between Union Pacific and Norfolk Southern Railway. Soy Transportation Coalition Executive Director Mike Steenhoek says this union would create the first coast-to-coast, seamless railway in the country. “It’s essentially being able to create this east coast to west coast, more seamless single rail company, and that’s something that’s very unique and it has a lot of ramifications if it’s allowed to proceed.” The merger could reduce competitive pricing in the rail transportation industry. “What often occurs is that puts more upward pressure on rail rates that decreases service reliability. What you’re essentially doing is you’re changing the balance between the customer and the railroad. So, there’s a concern among many that when you’re starting to limit the number of transportation providers, more of the competitive balance will shift away from the customer and to the railroad, and we’ve seen examples of that throughout history.”