U.S. grain shippers say two major rail companies have failed to meet minimum standards in their revised application to merge.
Soy Transportation Coalition Executive Director Mike Steenhoek tells Brownfield Ag News that Union Pacific and Norfolk Southern railroads recently revised their proposals for the Surface Transportation Board.
“Will this actually enhance competition?” Steenhoek says is the question. “There are a lot of people who argue, how can a consolidation of this size and scale increase competitive pressure against the remaining railroads?”
The National Feed and Grain Association this week filed a petition for the board to reject the proposal, saying it falls short of the policies and directives required by current regulations.
Several other organizations of the Stop the Rail Merger Coalition, including The Fertilizer Institute, have submitted similar objections to the $85 billion merger.
According to Steenhoek, the comment and review process could take another year before any decision is made.
EDITOR’S TAKE:
We previously reported on the growing opposition to this merger from several agricultural entities. It now appears that the opposition has grown and is becoming more organized. There is a genuine concern among these groups that the merger would seriously impede rail services to rural businesses, raise costs, and negatively impact growers by lowering their basis prices. It is difficult to stop this train once it is rolling, but these ag groups are determined to try.
In the meantime, be sure you put your ag customers at the top of your prospect list. Also be sure to place your inventory on AgTruckTrader.com®. With harvest soon approaching, they may need to trade up to meet the demands of the season, or they may do some searching during the harvest and then purchase afterwards. Either way, make sure they know you’re a CAD member and are there to meet their specific needs.
