The freight rail system is critical to Western Pennsylvania’s economy. It supports farms, factories and businesses that all depend on timely deliveries and competitive rates to thrive. I know, because I spent much of my career as a supply chain manager for a major glass manufacturer in the Pittsburgh area.
For shippers, rail service is a core input that directly affects our ability to operate, plan and remain competitive.
Union Pacific and Norfolk Southern, two of the largest railroads in the nation, recently announced their intention to merge, creating a company that would control nearly half the national freight rail market. This consolidation risks reducing competition, causing service delays and limiting options for shippers who rely on efficient and reliable rail service. A merger of this size would significantly change the balance of power between rail carriers and the businesses that depend on them.
With fewer alternatives available, shippers will likely face higher rates, which increase costs for producers and ultimately drive up prices for consumers. Industries such as agriculture, energy and manufacturing in Pennsylvania are especially vulnerable to these changes, which could disrupt supply chains and economic stability. When transportation costs rise or service becomes unpredictable, it affects everything from production schedules to businesses’ ability to meet customer demand.
As this merger proposal moves forward, the Surface Transportation Board needs to carefully consider the impact on competition, local workers and Pennsylvania families.
Jeff Smith
Butler