Union Pacific defends revised merger application.
Article excerpt
Union Pacific defends revised merger application. Union Pacific said its revised application to acquire Norfolk Southern - a deal that would create a 50,000-mile rail system covering 43 states - is "comprehensive and complete." The Class I railroad made that statement in response to criticism from rivals that have said the proposed merger to create the nation's largest railroad and the first single-transcontinental system would upend the industry's competitive balance. On April 30, UP submitted an amended application to the U.S. Surface Transportation Board, three months after the federal regulator rejected its first attempt last year as "incomplete." Since then, rival railroads have been piling on the more than 7,000-page filing, urging the STB to reject it again. UP officials state that they have provided additional details regarding their acquisition of NS, including an updated analysis that uses actual traffic data from all six North American Class I carriers. In the past, merger analyses have only used data provided by the STB. That more detailed analysis also allowed the railroads to provide a more accurate picture of proposed capacity improvements. In fact, the railroads said they would spend less on capacity now that they had a clearer picture of what they needed to do. "After completing the additional work requested by the STB, the facts remain clear: This...
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Among the group's chief arguments against the merger is how the last major UP acquisition - the takeover of Southern Pacific in 1996 - wreaked havoc on the rail network for months.
