EXCLUSIVE: ‘Humor is good,’ Union Pacific CEO says of video rate threat
Union Pacific CEO said his threat to raise rates on shippers in a now-released video was an attempt at humor.
The chief executive of Union Pacific says he wasn’t serious when he threatened to raise rates for shippers that didn’t support UP’s merger with Norfolk Southern.
Vena, who frequently peppers his public comments with joking asides, characterized the comment made to a shippers group as “a little humor” in a message to FreightWaves Thursday over social media.
UP (NYSE: UNP) sought to keep confidential a video that captured Vena’s comments to the Southwest Association of Rail Shippers at its annual conference in Houston in March. Rival Canadian Pacific Kansas City (NYSE: CP) sought its public release, arguing that Vena’s remarks allegedly threatening higher rates for shippers opposing the merger had chilled participation in the regulatory proceeding. The Surface Transportation Board agreed and ordered its release as part of the merger evaluation process. UP released the video Thursday.
In concluding his talk, Vena said, “If we don’t do that [merge], Union Pacific will still be there. And if I stick around, which I probably will, I’ll probably increase everybody’s rates that said they didn’t want a seamless railroad by three or four extra percent to teach you a lesson. Thank you very much.”
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