Chemical Industry Leaders Urge Scrutiny on Railroad Merger

The American Chemistry Council (ACC) sent a letter to President Trump asking him to closely review the proposed merger between railroad companies Union Pacific and Norfolk Southern. The letter, dated Oct. 16, included signatures from 40 chemical manufacturing CEOs. 

The deal would be the largest rail merger ever reviewed by the Surface Transportation Board (STB), according to the organization.

The letter warns that combining the two railroads could reduce transportation options, raise shipping costs and harm U.S. manufacturing competitiveness. “Fewer railroads will mean fewer transportation options, and the merger threatens to make our U.S. manufacturing sites less competitive with the rest of the world,” the CEOs wrote.

ACC said the merger would create a transcontinental railroad controlling nearly half of U.S. rail traffic, further concentrating market power in an industry already dominated by four major carriers. The group cited prior rail consolidations that led to service disruptions and higher costs.

“President Trump has made real progress rebuilding American manufacturing,” said ACC President and CEO Chris Jahn in a statement. “Let’s not let a monopoly undo it. We need a better deal — one that enhances competition between railroads, lowers costs, grows jobs, and strengthens America.”

The council urged the STB to uphold its merger standards and reject any deal that fails to improve rail-to-rail competition and service for U.S. manufacturers.