The National Grain and Feed Association filed a formal opposition Wednesday asking federal regulators to reject the proposed merger between Union Pacific and Norfolk Southern Corporation.
In its Aug. 13 submission to the Surface Transportation Board, the trade group argues the railroad companies’ updated application fails to meet standards established in the board’s Major Rail Consolidation Procedures from 2001.
Those procedures require that railroad mergers do more than simply preserve existing competition. They must actually increase and improve competition for customers, according to the association’s filing.
The merger was announced 13 months ago. The NGFA represents companies across the agricultural supply chain that depend on rail transport for grain and feed products.
The opposition comes in response to a revised application the railroads submitted July 27. While the NGFA acknowledged the companies’ efforts to address previous concerns, the group’s board of directors determined the updated proposal still falls short of regulatory requirements.
“The NGFA Board of Directors met today and determined that the application does not cross the bar required under the 2001 procedures and has voted to oppose the merger,” the association said in a statement.
The Surface Transportation Board will consider input from various stakeholders before making a final decision.
