WASHINGTON, D.C. — The American Fuel & Petrochemical Manufacturers (AFPM), alongside the Alliance for Chemical Distribution (ACD), American Chemistry Council (ACC), the Fertilizer Institute (TFI) and the National Industrial Transportation League (NITL), filed a joint motion urging the Surface Transportation Board (STB) to deny the proposed Union Pacific and Norfolk Southern merger application. Together, the groups argue that the railroads have repeatedly failed to demonstrate how this merger would enhance competition or improve service for rail customers.
AFPM president and CEO, Chet Thompson issued the following statement:
"American refiners and petrochemical manufacturers depend on a competitive and reliable rail network to move the materials that power our economy. This merger would further concentrate market power, reduce competition and threaten higher transportation costs across critical supply chains. History shows rail consolidation has too often led to higher rates, longer transit times and reduced service. After three attempts, the applicants still have not demonstrated that this merger would enhance competition or serve the public interest."
For more information on 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
- 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.
