AS FEDERAL REGULATORS CONSIDER THE PROPOSED MERGER OF TWO MAJOR RAILROADS, IOWA SENATOR CHUCK GRASSLEY SAYS IT MAY -NOT- BE IN THE BEST INTERESTS OF AMERICA’S FARMERS TO HAVE UNION PACIFIC AND NORFOLK SOUTHERN JOIN FORCES.
RAILMERGE1 OC…..”SOME CONSIDERATION” :16
THE 85-BILLION DOLLAR MERGER WOULD CREATE AMERICA’S FIRST COAST-TO-COAST TRANSCONTINENTAL RAILROAD.
REPORTS SAY THE COMBINED RAIL NETWORK WOULD STRETCH 50-THOUSAND MILES AND SPAN 43 STATES — INCLUDING IOWA, WHILE CONNECTING TO ABOUT A HUNDRED PORTS.
RAILMERGE2 OC………BAD FOR AGRICULTURE” :16
THE DEAL IS ALSO SEEING STRONG OPPOSITION FROM SHIPPERS, LABOR UNIONS, AND COMPETING CARRIERS LIKE B-N-S-F, WHO FEAR A MERGER WILL BRING INCREASED MONOPOLY POWER, FEWER ROUTING CHOICES, AND HIGHER SHIPPING COSTS.
GRASSLEY SAYS THE SURFACE TRANSPORTATION BOARD HAS TEMPORARILY HALTED PROCEEDINGS AS IT GATHERS MORE DATA ON THE POTENTIAL IMPACTS.
RAILMERGE3 OC…..”INFORMATION THEY NEED” :15
THE TWO COMPANIES PROPOSE MERGING BY EARLY NEXT YEAR.
GRASSLEY SAYS HE’LL RESERVE ANY FURTHER JUDGMENT ON THE PROPOSAL UNTIL THERE’S A RULING FROM THE BOARD.
