President Donald Trump recently praised one of the country’s largest retailers for lowering prices on everyday essentials and encouraged other retailers to do the same.
Every American family benefits when businesses compete to keep costs down. But while Washington is looking for ways to lower prices, another decision quietly making its way through the federal government could have the opposite effect.
Union Pacific and Norfolk Southern are asking federal regulators to approve one of the largest rail mergers in modern history. If they succeed, the companies will gain unprecedented influence over how freight moves across much of the country, including the products Iowa depends on. That is why this merger deserves more than optimistic headlines and corporate promises. Before regulators approve a deal that would reshape freight rail across America, the companies must prove it will strengthen competition, improve service and avoid raising costs for the industries that depend on rail every day. So far, the companies have fallen short.
The Surface Transportation Board (STB) agrees. While it recently accepted the companies’ revised application for further review, the STB made clear that acceptance is not approval. Regulators said the filing still lacks clarity and leaves important questions unanswered. That’s exactly how this process should work. When a merger has the potential to reshape an entire industry, asking hard questions is mandatory.
For Iowa, freight rail is necessity. It’s how grain reaches export markets, how ethanol moves across the country and how manufacturers receive the raw materials they need. When rail service becomes less reliable or more expensive, those costs don’t stay with the railroad. They move through the supply chain until businesses have little choice but to pass them along.
That’s why this conversation extends far beyond the rail industry. It affects farmers trying to stay profitable, manufacturers working to remain competitive and families already stretching every dollar at the grocery store. If we’re serious about lowering costs, we should also be serious about protecting the transportation networks that help keep those costs in check.
Recent reports only reinforce why this review should remain thorough. Norfolk Southern says seasonal demand contributed to slower network performance, while labor organizations point to staffing shortages instead. Reports indicate the railroad’s workforce has fallen to a four-year low, even as the companies continue promising billions of dollars in merger “synergies.” If one railroad is already struggling to maintain staffing and service today, it’s reasonable to ask how combining two of the nation’s largest rail systems will make those challenges easier tomorrow.
Union Pacific and Norfolk Southern are asking regulators, shippers and communities to trust that this merger will deliver the benefits they’ve promised. But trust should be earned with facts, not assumptions. The STB has every right to keep pressing for answers before making a final decision.
For Iowa’s farmers, manufacturers, small businesses and consumers, getting this one right matters far more than getting it done quickly.
John Wills is speaker pro tempore of the Iowa House of Representatives. He is a Republican representing District 10, which includes Dickinson and Palo Alto counties and portions of Clay and Kossuth counties.
This article originally appeared on Des Moines Register: Scrutinize Union Pacific-Norfolk Southern merger proposal | Opinion
Reporting by John Wills, Guest columnist / Des Moines Register
USA TODAY Network via Reuters Connect
By John Wills, Guest columnist | USA TODAY Network
