In light of Union Pacific’s proposed merger with Norfolk Southern, BNSF Railway filed a petition with the Surface Transportation Board (STB) for an immediate review and enforcement of conditions imposed on UP nearly 30 years ago.
BNSF said the conditions put upon Union Pacific when it proposed merging with Southern Pacific in 1996 point to the larger rail line’s longstanding pattern of obstructive conduct that, BNSF said, has “eroded competition and harmed customers.”
Since the UP/SP merger, the UP has repeatedly resisted efforts to preserve competitive rail service, BNSF said, despite the STB’s efforts to protect shippers. BNSF said it, on the other hand, has worked diligently to preserve competition and customer rights through negotiations, oversight and formal petitions. Still, more customers face fewer solutions since the UP/SP merger, BNSF said.
“With UP now proposing another unprecedented merger, this time with Norfolk Southern, the stakes for shippers nationwide could not be higher,” BNSF Executive Vice President and Chief Legal Officer Jill Mulligan said. “Before considering any new consolidation, we ask the board to ensure the commitments made during the UP/SP merger are honored, and that competition is, at a minimum, preserved as required under the prior merger standards.”
BNSF is asking the STB to review the implementation of the UP/SP merger conditions, enforce the rights granted to BNSF to maintain competitive access for shippers and modify conditions as necessary to prevent further harm.
BNSF is also requesting the board enter into a procedural schedule to allow all parties to fully develop the record for the board’s review.