USDA today announced it has submitted comments to the Surface Transportation Board (STB) regarding the STB's proposed changes to major rail consolidation procedures. In their statement, the agency said it “strongly supports” the STB's proposal that merging Class I railroads be required to enhance rail-to-rail competition as a condition for a proposed merger's approval.
USDA also said it supports the inclusion of rail alliances in the merger rules.
In its comments, USDA said it is convinced that competition between rail carriers is essential to improving customer service in the railroad industry, to preserving the economic vitality of the railroad industry, and to protecting shippers from the abuse of railroad market power. “Due to the magnitude of economic harm further major railroad mergers potentially can inflict on shippers, communities, and other affected parties, USDA opposes any decrease in the review period of proposed mergers,” it said in a statement.