CN slams UP-Norfolk Southern merger bid as still dangerously incomplete
Canadian National Railway (CN) has submitted formal comments to the Surface Transportation Board (STB) regarding the latest merger application from Union Pacific (UP) and Norfolk Southern (NS). The company argues that the revised proposal remains incomplete and fails to address key concerns raised by regulators.
CN’s critique highlights ongoing deficiencies in the application, despite attempts by UP and NS to amend it after an earlier rejection by the STB. The amended merger application, filed by UP and NS, only resolves one of the three major issues flagged by the STB in its previous review. While the companies provided the full Merger Agreement this time, they left critical gaps in other areas. Missing details include complete competition analyses, consistent market share data, and accurate identification of affected locations. The application also lacks assessments of downstream impacts and a required filing for the Terminal Railroad Association of St. Louis (TRRA).
CN’s filing stresses that the Applicants’ proposed Committed Gateway Pricing (CGP) program—touted as a key competitive improvement—covers less than one percent of U.S. rail traffic. It excludes major freight categories, such as finished vehicles and intermodal shipments. Even the Applicants’ own experts admit the CGP could raise shipping costs for some customers, undermining its stated benefits.
Olivier Chouc, CN’s Executive Vice-President and Chief Legal Officer, accused UP and NS of ignoring the STB’s review process and the needs of stakeholders. He argued that the application still falls short of regulatory standards, leaving the Board without essential information to evaluate the merger’s competitive and operational effects.
Despite these shortcomings, CN acknowledged the STB’s dedication to a fair and thorough review. The company remains confident that the Board will ultimately reject the incomplete submission. The STB must now decide whether the amended application meets its requirements. CN’s submission reinforces the view that critical data and analyses are still missing. Without these, regulators cannot fully assess the merger’s potential impact on competition and rail operations across the U.S.
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