UP CEO’s rate threat adds wrinkle to Norfolk Southern merger process

The railroad said Jim Vena’s remarks that he would raise rates on shippers who oppose the merger was an “offhand comment.”

Railroads and rail shippers already wary of the pending merger between Union Pacific and Norfolk Southern have expressed significant concern after UP CEO Jim Vena said he would raise rates on shippers who oppose the tie-up in a video made public this week.

In the video captured in March during a presentation at a conference of the a Southwest Association of Rail Shippers, Vena is shown saying “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.”

The comments came at the end of Vena’s speech outlining the benefits of the proposed merger, during which he also said the railroad was willing to make deals with customers and to discuss shipper concerns to move the deal forward.

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