ACD Press Release

ACD Encourages STB to Oppose Union Pacific-Norfolk Southern Merger Agreement

Arlington, VA- Today, Alliance for Chemical Distribution (ACD) President and CEO Eric R. Byer released the following statement opposing the $85 billion merger between Union Pacific and Norfolk Southern and encouraging the Surface Transportation Board (STB) to block the deal as it is contrary to the public interest:

“The chemical distribution industry relies on freight rail to deliver the products essential to Americans’ everyday lives. Following prior rail mergers, freight rail has not served the needs of its customers who inevitably pay increasingly high rates for unreliable and inadequate service. Despite persistent deteriorating rail service, railroads are rarely held accountable for supply chain disruptions caused by extensive monopolies and an outdated regulatory system. Freight rail is already highly concentrated, and further consolidation will exacerbate existing challenges while expanding the rail industry’s market power and profit margins.

“The STB must ensure that freight rail customers have access to competitive, efficient, and reliable rail service. Approving a transcontinental mega-merger will benefit the merging rail companies and Wall Street, at the expense of U.S. chemical distribution companies who are critical contributors to the American economy. It is hard to see how expanding railroad monopolies would meet the STB’s high burden to ‘enhance competition’ and serve the ‘public interest.’”

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The Alliance for Chemical Distribution (ACD) partners with our more than 400 chemical distribution industry members to provide the education, connection, standards, and advocacy they need to responsibly move the essential products our world depends on. As leaders in the $27B+ chemical distribution industry, ACD member companies commit to the highest standards in quality, safety, sustainability, and performance through ACD Responsible Distribution^TM. For more information, visit www.acd-chem.com.