Rail Merger Application Revised, Surface Transportation Board Weighs In

The Union Pacific and Norfolk Southern merger application has been revised in response to comments from the Surface Transportation Board, with the two railroads defending the completeness of their revised application.

In filing their response, UP-NS addressed three areas that caused the board to reject the initial application as incomplete: market-share data, the status of the Terminal Railroad Association of St. Louis, and documents related to the merger agreement.

The board had cited a lack of market-share data in rejecting the original application, but the revised application now uses 'the best information available regarding merger-related changes in traffic' to address this issue.

Regarding the Terminal Railroad Association of St. Louis, UP-NS claims that the association has 'unambiguously and unconditionally' indicated they will not seek to control the railroad.

The board has until May 30 to determine whether to accept the revised application or again reject it as incomplete, a decision that could have significant implications for the rail industry.

A substantial portion of the UP-NS response is devoted to explaining why the two railroads believe they have fulfilled the requirement to provide market-share data, relying on an explanation of the processes their three outside experts used to develop the information in the revised application.

The filing also addresses concerns from CPKC over the way market-share data is presented, noting that 'the level of detail and aggregation did not materially change from the original application'.

This response highlights a recurring theme in UP-NS filings, as they address multiple issues raised in comments on the revised application.

Ultimately, the Surface Transportation Board's decision will have significant implications for the rail industry, as it sets a precedent for future mergers and determines whether this particular merger can move forward.