Rail mega-merger revives proposal for new, expanded Atlanta passenger services - and there's a trucking angle
Article excerpt
A bold proposal to reduce the number of major freight railroads could open the door for a dramatic expansion of rail passenger service in fast-growing Atlanta. Proponents see the merger of Union Pacific (NYSE: UNP ) and Norfolk Southern (NYSE: NSC ) to create the first transcontinental railroad as a once-in-a-generation opportunity to leverage local support and transform the Atlanta metroplex passenger rail network. A shift of thousands of commuters from road to rail would likely also improve fluidity for trucking logistics in the city, a crossroads of industry in the Deep South. The rail merger is currently being evaluated by the Surface Transportation Board, which isn’t expected to rule on the $85-billion consolidation until 2027. The tie-up has attracted its share of detractors who claim the monopolistic effects of shrinking the number of U.S. Class I carriers will raise rates and degrade service for shippers. But other stakeholders see a prime chance to extract valuable concessions. Canadian National (NYSE: CNI ) recently did just that in an access agreement that would expand its operations to the Mexican border while giving UP-NS access to a route around the congested hub of Chicago. It is precisely that ‘belt line’ bypass an embryonic coalition wants to bring to Atlanta, which would free up hundreds of miles of track for passenger trains and help thin out the city’s...
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Presumably, political support could be cultivated after Union Pacific in its merger applications said it plans to move more than 500 management jobs from NS headquarters in Atlanta to its own base in Omaha.
