Baldwin Calls for Rejection of Rail Megamerger That Threatens to Raise Costs on Wisconsin Farmers, Manufacturers, and Families

WASHINGTON, D.C. – Today, U.S. Senator Tammy Baldwin (D-WI) called on the Surface Transportation Board (STB) to reject the merger application filed by Union Pacific to acquire Norfolk Southern. If approved, this merger would greatly reduce competition in Class I rail and worsen already poor service and high costs experienced by Wisconsin farmers and manufacturers while jacking up costs on consumers as businesses pay more to get their products to market.

“As Wisconsin families watch the cost of just about everything skyrocket, the last thing they need is a rail merger that all but promises to raise prices and worsen already inadequate service for Wisconsin farmers, manufacturers, and businesses,” said Senator Baldwin. “Approving this merger would take us in the wrong direction – stifling competition, worsening service, and raising costs on consumers and businesses who are already facing growing headwinds because of the Trump Administration. While President Trump accepts payouts from Union Pacific to fund his $400 million ballroom, I’m ready to hold his feet to the fire and demand this merger be rejected on behalf of the Wisconsin farmers, manufacturers, and consumers who simply cannot afford it.”

The merger, in which Union Pacific agreed to acquire Norfolk Southern, would be the most significant consolidation in freight rail in decades and would undoubtedly reshape the U.S. freight rail industry and supply chain. Baldwin has been critical of the rail merger, citing the continued consolidation in the railroad industry and impacts on manufacturers, agriculture, small businesses, and consumers. The Surface Transportation Board received a notice of intent regarding the proposed railway merger in July. Today, the railroads filed their formal application, which will initiate the merger review process.

In July, Senators Baldwin and Roger Marshall (R-KS) called on the Surface Transportation Board to scrutinize the impact of this merger on the already poor service and high costs experienced by American businesses and consumers that rely on freight rail. That letter came after President Trump illegally fired former STB member Robert Primus in June ahead of the proposed megamerger. As the STB considers this merger, Union Pacific’s CEO recently visited President Trump in the Oval Office and committed to helping fund the President’s $400 million White House ballroom. At a nomination hearing in November in front of the Senate Commerce Committee, U.S. Senator Tammy Baldwin (D-WI) pushed two of President Trump’s nominees for the Surface Transportation Board (STB) – Mr. Richard Kloster and Ms. Michelle Schultz – on whether they will act independently or simply take orders from the President.

Since the 1950s, the rail industry has consolidated from over 100 Class I freight railroads to only six today, leaving U.S. manufacturers, utility companies, agricultural producers, and small businesses paying excessive rates despite poor service and reliability.

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