WASHINGTON, D.C. — The American Fuel & Petrochemical Manufacturers (AFPM) today joined nearly 30 stakeholders across manufacturing, agricultural and energy industries to urge the Surface Transportation Board (STB) to take meaningful action to restore and promote competition in the U.S. freight rail network in the wake of a proposed merger between Union Pacific and Norfolk Southern.
“AFPM has serious concerns with further consolidation in the U.S. freight rail system and how it will impact American refiners, petrochemical manufacturers and our customers. Our members’ ability to produce the fuels and petrochemicals our economy needs to thrive depends on timely and affordable rail service. Therefore, we are looking to the STB to prioritize freight rail competition so service improves for all shippers.” — Chet Thompson, AFPM President and CEO
The joint letter — signed by members of the Rail Customer Coalition (RCC) — raises the following points:
- “A strong, competitive transportation network is critical to strengthening American manufacturing, unleashing energy production, securing domestic supply chains, and preserving U.S. leadership in global trade.”
- “Past rail mergers have shown what happens when consolidation goes unchecked: service suffers, costs increase, and jobs disappear.”
- “Today, just four Class I railroads control over 90% of all freight traffic. A transcontinental merger could spark a new wave of consolidation, leaving captive shippers with even fewer Class I rail companies and competitive joint line options to choose from.”
- “At a time when policy makers are working to strengthen American manufacturing, secure supply chains, and fight inflation, we must be careful not to allow further consolidation in a critical transportation sector to undo that progress.”
Read the letter in its entirety and learn more about RCC.
For more information on the importance of freight rail to the U.S. energy sector and the ongoing decline of both quality service and competition in the freight rail space:
The American Fuel & Petrochemical Manufacturers (AFPM) is the leading trade association representing the makers of the fuels that keep us moving, the petrochemicals that are the essential building blocks for modern life, and the midstream companies that get our feedstocks and products where they need to go. We make the products that make life better, safer and more sustainable — we make progress.
