USA: BNSF Railway has filed a petition with the Surface Transportation Board requesting immediate review and enforcement of conditions which were imposed when Union Pacific acquired Southern Pacific in 1996.
BNSF claims that UP has engaged in ‘obstructive conduct’ that has ‘harmed customers by delaying or preventing BNSF from fully replacing the competition that was lost through the UP/SP merger as the board originally intended.’
BNSF says UP has denied it access to customers ‘through a variety of delay and deny strategies’, imposed ‘unreasonable operational demands that make it harder for BNSF to exercise its rights’ and has refused to engage in administrative matters such as updating track access rights’.
With UP looking to acquire Norfolk Southern, BNSF said its concerns should be ‘addressed before any new proposed merger reshapes the industry, affecting shippers and the overall supply chain from coast to coast’.
BNSF’s petition filed on November 28 asks STB to:
- review the implementation of UP/SP merger conditions;
- enforce the rights granted to BNSF to maintain competitive access for shippers;
- modify conditions as necessary to prevent further harm and uphold the public interest.
‘With UP now proposing another unprecedented merger, this time with Norfolk Southern, the stakes for shippers nationwide could not be higher’, said BNSF EVP & Chief Legal Officer Jill Mulligan. ‘Before considering any new consolidation, we ask the board to ensure the commitments made during the UP/SP merger are honoured, and that competition is, at a minimum, preserved as required under the prior merger standards.’
