The Alabama Port Authority (APA) has filed a notice of intent to participate in the Surface Transportation Board’s review of the proposed consolidation of Union Pacific and Norfolk Southern. It was submitted on Tuesday, Sept. 8, the procedural filing preserves APA’s ability to participate as a party of record as the proceedings move forward.
An initial review indicates that the UP-NS merger, as currently proposed, could be detrimental to Alabama’s economic interests and many of the state’s rail-reliant industries. In the coming weeks, APA will continue to engage with its railroad partners, Alabama business leaders and other stakeholders as it finalizes its comments to the Surface Transportation Board.
“Our customers, including some of Alabama’s largest industries, depend on rail connections to reach domestic and global markets. As an economic development engine for the state, the Alabama Port Authority has a responsibility to advocate for the businesses we serve and the transportation network they need to grow. We have serious concerns about any railroad consolidation that would limit competition, create the potential for supply chain disruptions and expose businesses to higher transportation costs, particularly at a time when they are already operating on tight margins.” — Doug Otto, Director and CEO of the Alabama Port Authority
Commentary: Norfolk Southern comments on Union Pacific-Norfolk Southern merger creating opportunities for Alabama
This merger will create opportunity for Alabama businesses, manufacturers and exporters and improve affordability for Alabamians and Americans across the country. The combined Union Pacific-Norfolk Southern network will expand market access, create more efficient single-line service, strengthen supply chain connectivity and enhance one of Alabama's most important gateways to global trade, the Port of Mobile, helping industries from agriculture and coal to chemicals, forestry, metals and intermodal grow and compete. Norfolk Southern has a proven record of investing in Alabama's future and serving world-class manufacturing operations, including significant safety, capacity and connectivity improvements along the 3B Corridor that strengthen links between the Port of Mobile and businesses across the state, while helping attract new jobs and industrial investment. We're confident that we're building a stronger freight network that supports Alabama's competitiveness and leadership in American manufacturing, reindustrialization and export growth, and we'll continue working with interested parties in the state as they review to help them understand the opportunities.
