In a unanimous decision announced on January 16, the Surface Transportation Board rejected the merger application filed by Union Pacific and Norfolk Southern as “incomplete.”
The STB said the merger application does not contain certain information required by the Board’s regulations. Among the missing information was a failure to provide “projected market shares” regarding future revenues and traffic volumes. Also, the railroads incorrectly identified acquisition of the Terminal Railroad Association of St. Louis as a minor transaction, while STB considers it to be a significant transaction. The railroads have until June 22 to refile their application.
After researching the merger proposal and lengthy discussions with corporate leaders at the two railroads, the BLET in conjunction with Teamster Rail Conference affiliate BMWED publicly announced last month their active opposition to the proposed merger. Combined, BLET and BMWED represent 53 percent of the unionized workforce at UP and NS. The merger of the two Class I railroads, if approved by federal regulators, would create America’s first transcontinental railroad.