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Opinion: Oversight Can Save Our Nation’s Railroads – and the Economy

In Missouri, freight rail remains at the core of our industries, connecting our farmers, manufacturers and shippers to national markets—but its impact reaches far beyond state lines. Missouri is one of the nation’s most critical rail crossroads, carrying freight between the West Coast, Gulf Coast, Midwest, and East Coast.

Any major change to Missouri’s railways causes ripple effects beyond the state. It affects grocery shelves in the Southeast, factories in the Midwest, ports along the Gulf, and consumers on the West Coast. Each day, trains passing through Kansas City and St. Louis work together to fuel the national supply chain. When this foundation is disturbed, the repercussions spread far beyond Missouri.

That’s why the Surface Transportation Board’s (STB) commitment to competition is so important, and why its recent decision to reject the Union Pacific (UP) and Norfolk Southern (NS) merger application and request more information deserves recognition.

The STB is no stranger to massive mergers and is well aware of the fallout that can follow consolidation.

Large, unchecked mergers pose an inherent threat to competition and the U.S. economy. Industries that depend heavily on freight rail— like agriculture, energy, and chemicals—could face shipping delays and unreliable service. Shippers would have fewer railway alternatives, resulting in higher costs, and those costs would inevitably trickle down to consumers in the form of higher prices for groceries, housing, energy, and everyday goods.

In the end, no one would be protected from the impact.

The proposed UP-NS merger specifically would create a single railroad controlling roughly 40 percent of the U.S. freight rail market. The STB understands that a merger of this magnitude must clear a high bar, which is why its careful and thorough review of the UP-NS merger application is important.

The railroads failed to provide the level of information required for the application process. Rather than rushing the transaction, the STB took the necessary time to fully examine the proposal and ensure the applicants met the demanding legal threshold. Their thorough approach to the review indicates that the STB understands what is at stake for communities, cities, and states whose economies depend on reliable freight rail.

When UP and NS submit another application, the STB must continue to evaluate the proposal with the rigor required to protect competition, safety, manufacturers, and consumers. Shippers and other railroads have already warned the STB that approving an inadequate application could weaken competition and reduce service quality. By standing strong in its standards, the STB will reaffirm that freight rail is vital to local and national economies and that transactions with far-reaching impact are deserving of careful oversight and protection.