On October 16，forty chief executives from leading U.S. chemical manufacturers have urged President Donald Trump and federal regulators to block or heavily scrutinize the proposed merger between Union Pacific (UP) and Norfolk Southern (NS), calling it the largest and most consequential rail consolidation ever reviewed by the Surface Transportation Board (STB).

In a joint letter released by the American Chemistry Council (ACC), the executives warned that the merger could sharply reduce competition, disrupt supply chains, and increase transportation costs for domestic manufacturers.

“Fewer railroads will mean fewer transportation options, and the merger threatens to make our U.S. manufacturing sites less competitive with the rest of the world,” the letter stated.

If approved, the UP-NS merger would create a transcontinental carrier controlling nearly half of U.S. rail freight. According to ACC data, just four major railroads already move more than 90 percent of all U.S. rail traffic. Industry leaders fear the deal could pave the way for further consolidation, eventually leading to a national rail duopoly.

Past mergers, the letter noted, have resulted in service breakdowns, shipping delays, and rising costs. The chemical sector, which relies heavily on freight rail to transport raw materials and finished products, could be among the hardest hit.

“The chemical industry is a cornerstone of American manufacturing,” said Chris Jahn, ACC president and CEO. “Our facilities require dependable, competitive rail service to deliver essential materials across the country.”

Jahn praised the administration’s efforts to revitalize U.S. manufacturing but cautioned that unchecked consolidation could undermine that progress.

“President Trump has made real progress rebuilding American manufacturing,” Jahn said. “Let’s not let a monopoly undo it. We need a better deal， one that enhances competition, lowers costs, grows jobs, and strengthens America.”

The ACC and its member companies are urging the Surface Transportation Board to apply its merger standards strictly and to reject any transaction that fails to improve rail-to-rail competition and service reliability.

Background

The proposed UP-NS merger follows a wave of consolidation in the freight-rail sector. Since the 1980s, the number of Class I railroads has fallen by more than 70 percent. The ACC argues that this trend has led to higher shipping costs, reduced service quality, and greater vulnerability to supply-chain disruptions.

Chemical shipments remain one of rail’s largest revenue streams, generating over $13 billion annually and representing more than 8 percent of total U.S. rail carloads, according to ACC and Association of American Railroads data.

Source： American Chemistry Council (ACC)