Two of North America’s largest railroad companies announced a merger to connect freight customers to Canada, the United States, and Mexico on a single network for the first time. If approved by the Surface Transportation Board, the railroads predict any final merger could happen in mid-2022.
ARA is a member of the Rail Customer Coalition which is led by the American Chemistry Council (ACC). ACC released this statement:
“We are carefully reviewing the proposed merger between the two major railroads with our member companies since it will impact how chemical manufacturers ship their products to other sectors of the economy. The freight rail industry is already highly consolidated with a small number of railroads controlling most of the rail traffic in the United States and we are concerned that this merger could potentially lead to a greater concentration of market power.
“We strongly urge the Surface Transportation Board to carefully consider whether this merger could negatively impact access to service and competitive options for freight rail customers. The proposed merger along with the downsizing underway within the rail industry also underscore the urgent need to modernize the country’s freight rail policies, including the adoption of a competitive switching policy for rail traffic that could help provide more and better access to shipping options for American producers.”
