An agricultural group focused on transportation says the proposed acquisition of Norfolk Southern by Union Pacific railroad might take longer than the railroads expect.
Mike Steenhoek with the Soy Transportation Coalition says the railroads’ goal of getting the Surface Transportation Board’s approval and closing the deal in early 2027 might be a challenge . “Right now, there are only four members of the Surface Transportaiton Board and so the fifth, who would be third member of the President’s own party, still needs to be identified and nominated, and then that would be confirmed by the Senate. That itself is going to take a considerable period of time.”
Steenhoek tells Brownfield he expects President Trump’s nominee to the Surface Transportation Board will not have an easy path to Senate confirmation. “Whenever the confirmation hearing occurs, this discussion related to the Union Pacific and Norfolk Southern merger is going to feature prominantly during that process. I anticipate there will be many, many questions that are voiced during that process.”
Steenhoek says he believes the railroads may have strategically waited until now to pursue consolidation, knowing the regulatory climate was less favorable during the Biden administration and knowing it could be more difficult during the next administration.
