BNSF President & CEO Katie Farmer said that while the company is reviewing the STB filing submitted by Union Pacific and Norfolk Southern on Friday, it will have more to say.
However, the company’s review to date does not change its opposition to the proposed merger.
“The transaction poses a significant threat to the U.S. economy and the American consumer through its long-term competitive harms,” Farmer said in a statement. “It would leave shippers with fewer options—driving higher rates and ultimately higher prices for consumers. This didn’t begin with customers asking for this merger, and the claimed public benefits appear to accrue primarily to shareholders.
“Past mergers demonstrate the risk of serious service failures with destructive impacts to customers, the U.S. rail network and the American economy,” Farmer added.
Union Pacific and Norfolk Southern entered into a merger agreement on July 29.
The railroads said their nearly 7,000-page application provides comprehensive and compelling new details on how the end-to-end combination will enhance competition and deliver broad public benefits. The application includes a record-breaking 2,000 letters of support from stakeholders, joining shareholders at both companies who cast 99% in favor of the merger.
“This is precisely why the STB strengthened its merger rules: applicants must now prove their deal will not only preserve but enhance competition; that it serves the public interest, and its purported benefits can’t be delivered through partnerships,” Farmer said.
“BNSF is confident that UP has not met these requirements. UP has a long history of making promises in past mergers that they back away from once they’ve secured approval,” Farmer added. “BNSF remains focused on achieving these same benefits through partnership and collaboration which results in streamlined service, and greater operational flexibility—delivering real, immediate benefits to customers.”
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