STB orders Union Pacific to make rate hike threat video public
Rail regulator rejects railroad’s appeal in dispute over remarks allegedly threatening shippers opposed to Norfolk Southern merger.
The Surface Transportation Board has ordered Union Pacific to make public a recording of Chief Executive Jim Vena’s remarks to a shipper conference, rejecting the railroad’s appeal in a dispute over whether he threatened customers who oppose its proposed acquisition of Norfolk Southern (NYSE: NSC).
The board’s Nov. 4 decision leaves in place a ruling requiring the recording to lose its confidential designation.
The dispute has raised questions about transparency in the merger review, with the regulator expressing “serious concerns” about whether Union Pacific (NYSE: UNP) had influenced stakeholder input on the proposed $85 billion transaction.
The recording captures Vena’s address to the Southwest Association of Rail Shippers at its annual conference in Houston in March. Rival Canadian Pacific Kansas City 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.
This story was originally published by FreightWaves. Read the full story at FreightWaves →
Conversation