Whether it’s moving livestock and feed, supplying building materials, or getting products to market on time, freight rail plays a quiet but critical role in keeping businesses running and communities growing. Alabama’s economy depends on transportation that works reliably and efficiently, and any disruption can ripple across farms, factories and small businesses alike.
The proposed merger between Union Pacific (UP) and Norfolk Southern (NS) has highlighted just how vital reliable rail service is. With a deal of this magnitude, the review process is as important as the final decision itself. Fortunately, the Surface Transportation Board (STB) rejected the initial merger application, and if they want to move forward, they must refile.
It’s encouraging to see the STB being thorough, given how much is at stake for the businesses, workers and communities that depend on reliable freight service to move crops, livestock, raw materials and finished goods.
Instead of rushing a decision on an application of historic scale, the STB is taking the time to thoroughly evaluate the proposal, request additional details and ensure the companies meet the high standards required. This deliberate process shows an understanding of what’s at stake, not just for the railroads, but for the businesses, workers and communities that rely on a competitive and dependable freight rail system to support local economies and family livelihoods.
For businesses across Alabama, freight rail service is not easily replaced. Many agricultural producers and manufacturers have limited transportation options. When service slows, becomes less predictable, or costs rise, there’s no quick workaround. Delays can disrupt production schedules, shrink margins and make it harder for small businesses to compete. Those impacts ripple outward, affecting jobs and families here in our community.
That is precisely why the STB insistence on a thorough, fact-based review is so important. Under its Major Merger Rules, the STB is required to do more than ensure a deal does no harm. Applicants must demonstrate that a merger would enhance competition, improve safety, and serve the broader public interest.
So far, the STB is doing its job. Rather than rubber-stamp the deal, the STB is insisting on a thorough review.
Alabama’s economy, from farms and factories to small businesses, is counting on a freight rail network that is competitive, reliable and resilient. As UP and NS move forward with their application, it is critical that the STB maintain this level of scrutiny. Holding applicants to the highest possible standard is not an obstacle to progress, it is how progress is protected.
A well-reviewed merger benefits everyone, It safeguards supply chains, supports local economies and ensures that freight rail continues to serve the needs of our businesses and communities for years to come.
