WASHINGTON, D.C. – American Fuel & Petrochemical Manufacturers (AFPM) Vice President of Petrochemicals and Midstream Rob Benedict issued the following statement regarding the Surface Transportation Board's (STB) decision to deny motions for summary denial of the proposed Union Pacific-Norfolk Southern rail merger application and allowing the proceeding to move forward on the merits.
"While the Board denied the motions for summary denial, its decision is a procedural step and not a judgment on the merits of the proposed merger. The Board expressly stated that it has reached no conclusions regarding whether the application satisfies the standards required for approval, and significant questions regarding the applicants' proposal remain unresolved.
“AFPM continues to have serious concerns that the merger could reduce competition, diminish service for freight rail customers and increase transportation costs throughout the supply chain. Competitive and reliable rail service is essential for American refiners and petrochemical manufacturers to produce and deliver the fuels and products Americans depend on every day. Union Pacific and Norfolk Southern still have substantial work to do to demonstrate that this proposal would enhance competition and serve the public interest as the Board's review continues."
For more information on the importance of freight rail to the U.S. energy and petrochemical sectors and the decline of both quality service and competition in the freight rail space, see these AFPM resources:
- Why freight rail competition matters to American energy manufacturers and consumers
- AFPM urges STB to reject latest rail merger application, citing competition concerns
- Continued consolidation of U.S. Class 1 freight rail
- Reciprocal switching needed to address lack of freight rail competition & years of poor service
- Freight rail in America: Can a market be ‘free’ if there’s almost no competition?
- Freight rail reform: Moving America’s economy
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.
