The Alliance for Chemical Distribution (ACD) released a statement urging the Surface Transportation Board (STB) to reject the proposed $85 billion merger between Union Pacific and Norfolk Southern, warning that the deal would further erode freight rail competition and service reliability.

ACD President and CEO Eric R. Byer stated that the chemical distribution industry relies heavily on freight rail and has already suffered from service issues and monopolistic practices following previous mergers. He warned that additional consolidation would only worsen conditions for rail customers while increasing costs.

“Approving a transcontinental mega-merger will benefit the merging rail companies and Wall Street at the expense of U.S. chemical distribution companies,” said Byer. “It is hard to see how expanding railroad monopolies would meet the STB’s high burden to ‘enhance competition’ and serve the ‘public interest.’”

This development highlights ongoing concerns related to distribution and supply chain infrastructure in the coatings industry.