Pennsylvania’s economy relies on a freight rail system that delivers competition, reliability and safety. Railroads move the chemicals, metals, lumber, energy products and manufactured goods that power our industrial base and sustain communities across our state.
Because of that central role, the proposed merger between Union Pacific (UP) and Norfolk Southern (NS) warrants careful, independent and thorough review. I want to commend the Surface Transportation Board (STB) for rejecting the initial application and making sure they have complete information before issuing such a consequential decision.
Concentrating this level of market power through a single merger threatens competition across the freight rail system. With fewer choices available, Pennsylvania shippers would likely face higher costs and diminished service, while consumers absorb the impact through rising prices on everyday goods. This consolidation risks undermining the economic stability of communities that depend on affordable, reliable rail access.
As a safety ambassador for commercial corridors, I am also concerned about the operational strain that mergers of this magnitude can create. Past rail consolidations have too often resulted in service disruptions, congestion and conditions that undermine safety for workers and the communities that rail lines pass through. Our supply chains cannot afford another disruption of this scale.
UP and NS will likely file another application. The STB must maintain this same rigorous standard to protect Pennsylvania’s economy, supply chains and communities. Anything less would put the long-term resilience of our freight rail system at risk.
Scott Nistico
President, Grayman LLC
Philadelphia, PA