LUBBOCK, TX – Union Pacific and Norfolk Southern are offering broader customer protections as they seek approval for their proposed merger, but agricultural shippers and other opponents remain unconvinced. USDA’s Grain Transportation Report says the railroads expanded pricing, access, switching, and arbitration commitments during federal review.
The proposal now includes bulk unit trains in its gateway pricing program. Eligibility would extend to shipments involving locations competitively served by BNSF Railway or CSX Transportation, not only facilities served exclusively by those railroads.
The companies also promise to preserve competition where customers would otherwise lose railroad options. Canadian National would gain access to many affected facilities under a separate settlement.
A proposed three-year program would provide expedited reciprocal switching when merger-related service falls below specific standards. Additional arbitration programs would address service damages and allow customers to challenge rates if promised public benefits fail to materialize.
Opponents argue the concessions still do not prove competition will improve. Grain shippers will watch service thresholds, switching access, rate protections, and enforcement during the Surface Transportation Board review.
Farm-Level Takeaway: Strong merger conditions could protect grain competition, but enforcement will determine whether shippers benefit.