UP-NS Merger Would Give One Carrier Half of All Rail Freight, BNSF Warns

Key Details BNSF Railway CEO Katie Farmer strongly opposed the proposed Union Pacific and Norfolk Southern merger at the Association of American Short Line & Regional Railroad Association's annual conference in Minneapolis. The combined carrier would control approximately 50% of all U.S. rail freight volume under a single operator. Why It Matters Farmer warned that consolidating half of all rail volume to one carrier would eliminate customer flexibility and reduce interchange points. The merger would allow one railroad to optimize its own network at the expense of shippers facing fewer options and higher rates, she said. Historical Precedent Farmer cited the 1996 Union Pacific-Southern Pacific merger as a cautionary example. Despite UP's claims of 12% volume growth within three years, UP's volumes have actually declined 13% over the past decade while revenue per unit increased 37% above other Class I networks. Future Concerns The BNSF CEO predicted UP would eventually sell underperforming network portions if growth projections fail to materialize. She emphasized that every major rail merger has followed the same pattern - reduced customer optionality and increased rates. The Surface Transportation Board rejected UP-NS's initial merger application as incomplete, with resubmission planned by April 30.