The Alabama Port Authority has filed to take part in the federal review of the proposed consolidation of Union Pacific and Norfolk Southern, saying the deal as proposed could hurt the state’s economy.
The Mobile-based authority submitted a notice of intent to participate with the Surface Transportation Board on Tuesday, September 8. The procedural filing keeps open the authority’s option to take part as a party of record as the proceedings move forward.
The authority said an initial review shows the merger, as currently proposed, could be detrimental to Alabama’s economic interests and to many of the state’s rail-reliant industries.
Over the coming weeks, the authority said, it will keep talking with its railroad partners, Alabama business leaders and other interested groups while it finalizes its comments to the board.
Otto cites competition and cost concerns
Doug Otto, the authority’s director and CEO, issued a statement on the filing.
“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.”
Otto’s statement is the latest in which the authority has raised concerns over the proposed Union Pacific-Norfolk Southern merger.
About the authority
The Alabama Port Authority runs the Port of Mobile and a growing network of inland multimodal transportation assets. The authority says the port supports one in seven jobs in Alabama and has generated more than $415 billion in economic impact across the state since 2019.
The authority attached a copy of its notice of intent to participate to its announcement.