‘Not in the Public Interest’: Canada’s Railroads Sound Off on Union Pacific-Norfolk Southern Merger

Core Viewpoint - The proposed merger between Union Pacific and Norfolk Southern, valued at $85 billion, is viewed negatively by Canadian railroads, including Canadian Pacific Kansas City and Canadian National, who argue it will harm the industry and reduce customer options [1][2]. Group 1: Industry Concerns - CPKC stated that the merger is "not in the public interest," "unnecessary," and would dominate rail transportation markets, limiting customer choices [2]. - CN's president emphasized that the industry does not require a merger to enhance service, advocating for more cooperation instead of consolidation [3]. - Both CPKC and CN have launched campaigns urging shippers to voice their opposition to the merger to the Surface Transportation Board (STB) [2][3]. Group 2: Regulatory Process - Union Pacific and Norfolk Southern plan to submit their merger application to the STB by early December, seeking to expedite the review process by requesting a 45-day reduction [4]. - The STB's review is anticipated to take between 17 to 22 months, with the timeline for shippers to file notices typically set for 45 days post-application submission [4]. - CPKC's CEO has called for a thorough review of the merger application, indicating that a comprehensive evaluation cannot be completed in less than 16 to 17 months [5][6].