Major US ports have urged regulators to scrutinise Union Pacific's proposed acquisition of Norfolk Southern, warning the deal would create the first freight-only transcontinental railway and harm competition, reported the American Shipper.
In a letter to the Surface Transportation Board, the National Association of Waterfront Employers expressed strong concerns, saying the reduction of two of the four major intermodal rail competitors could damage the industry.
NAWE President Carl Bentzel said intermodal rail service is vital for US ports and businesses, and further consolidation could undermine competitiveness, cargo flow and regional economic growth.
East Coast ports fear UP's coast-to-coast ambitions could weaken their investments in Asia import traffic, allowing West Coast ports to reassert dominance through a landbridge to eastern markets. About 40 per cent of East Coast imports move inland by rail compared with 60 per cent on the West Coast.
NAWE warned the merger would leave only two major transcontinental intermodal providers, risking reduced service options and reliability. Ports such as Los Angeles and Long Beach, which move more than 60 per cent of imports by rail, could see ripple effects across the supply chain.
The group criticised railways for limited investment in on-dock intermodal facilities, leaving marine terminals to bear costs with little service commitment. Mr Bentzel said investor pressure for higher share prices has worsened reductions and consolidations.
NAWE urged the STB to weigh long-term impacts on port communities, resilience and the national economy.
https://www.shippingazette.com/news?news_id=9251200000085
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