BNSF Petitions STB to Revisit Union Pacific–Southern Pacific Merger Conditions

BNSF Railway has filed a petition for the US Surface Transportation Board (STB) to review and enforce conditions established during the 1996 Union Pacific (UP) and Southern Pacific (SP) merger, stating that the commitments made are not being upheld.

BNSF claim that UP has engaged in conduct that has limited competitive rail access for shippers, contrary to obligations set nearly three decades ago. The company stated that efforts over the years to resolve these concerns through negotiations, oversight processes and previous petitions have not resulted in sustained compliance.

The request comes shortly after UP announced plans for a proposed merger with Norfolk Southern, prompting BNSF to call for earlier merger commitments to be examined before any new consolidation is considered.

Jill Mulligan, BNSF’s Executive Vice President and Chief Legal Officer said:

With UP now proposing another unprecedented merger, this time with Norfolk Southern, the stakes for shippers nationwide could not be higher. Before considering any new consolidation, we ask the board to ensure the commitments made during the UP/SP merger are honored, and that competition is, at a minimum, preserved as required under the prior merger standards.

BNSF’s petition asks the STB to review the implementation of the UP/SP conditions, enforce provisions intended to guarantee BNSF access in certain markets, and adjust those conditions if needed to prevent further competitive impacts. The company has also requested a procedural schedule to allow all parties to submit evidence for the board’s consideration.

According to BNSF, adequate competition is essential for dependable service and fair pricing, and the company argues that continuing issues related to the earlier merger must be evaluated before any further consolidation takes place in the rail sector.