BNSF Railway Petition Targets Union Pacific’s Rail Market Control

Published on December 6, 2025

To​‍​‌‍​‍‌​‍​‌‍​‍‌ maintain competitive rail access for shippers, BNSF Railway has asked the U.S. Surface Transportation Board (STB) to look into the situation again and carry out the stipulations set during the 1996 merger between Union Pacific (UP) and Southern Pacific (SP). BNSF maintains that the Union Pacific ha s not followed the New York City DOT DOT commitments for rail access made nearly 30 years, which were intended to guarantee that rail companies and shippers would have equal ​‍​‌‍​‍‌​‍​‌‍​‍‌access.

The Issue at Hand

BNSF claims that UP’s actions have been detrimental to competition in the rail sector. Despite multiple attempts to resolve these issues through negotiations and oversight, BNSF says that UP has failed to uphold the obligations outlined during the merger approval process. The company argues that this has resulted in limited rail access for shippers, potentially disrupting the fairness and reliability of service in the market.

BNSF’s move comes just as Union Pacific has announced plans to merge with Norfolk Southern, sparking further concerns from BNSF regarding the potential impact on competition in the industry. BNSF is urging the STB to ensure that any future consolidations do not compromise the level of competition guaranteed in the 1996 merger agreement.

Petition Highlights

BNSF’s petition asks the STB to review the implementation of the conditions that were imposed on Union Pacific during the UP-SP merger. Specifically, BNSF wants the STB to ensure that provisions are enforced that guarantee its access to certain markets that were previously protected. The company also asks that the conditions be modified if necessary to prevent further harm to competition in the rail sector.

The petition emphasizes that maintaining robust competition is crucial for ensuring dependable service and fair pricing for shippers. BNSF asserts that before any new consolidation in the industry is allowed, the STB must first review the compliance of Union Pacific with the commitments made during the 1996 merger.

Importance of Rail Competition

Competition in the rail industry is crucial for a variety of reasons, most notably to maintain affordable and efficient service for shippers. With fewer rail operators, there’s a risk that pricing and service standards could be adversely affected, leaving shippers with limited options and higher costs.

The rail sector plays an integral role in the U.S. economy, facilitating the transportation of goods across vast distances. When competition is limited or compromised, it can lead to monopolistic practices, where large companies could dictate pricing and service levels without being checked by other players in the market.

For BNSF, the lack of competitive access to certain rail routes has raised concerns about long-term service reliability and pricing. By revisiting the 1996 merger conditions, the company aims to ensure that the competitive landscape remains healthy, benefiting both rail operators and their customers.

BNSF’s Call for Review

BNSF Railway has made it clear that it is not opposed to mergers within the rail industry, but it strongly believes that such consolidations must be carefully examined to prevent negative impacts on competition. The company emphasizes that Union Pacific’s proposed merger with Norfolk Southern should not be allowed to proceed before a thorough review of previous merger commitments is completed.

As part of the petition, BNSF has asked the STB to establish a procedural schedule that would allow all parties involved in the review process to submit evidence and make their case before the board. This would ensure that any decisions made by the STB are based on a comprehensive understanding of the competitive dynamics in the rail industry.

The Road Ahead for Rail Industry Consolidation

The petition filed by BNSF is a reminder of the complexities involved in large-scale mergers within the rail industry. While consolidation can bring benefits in terms of efficiency and cost savings, it also has the potential to reduce competition and harm smaller players in the market.

The STB’s review of the UP-SP merger conditions could set a precedent for future industry mergers, providing a framework for how consolidation should be approached in the rail sector. The outcome of this petition may shape the future of rail mergers and the broader transportation landscape in the U.S.

With the potential merger between Union Pacific and Norfolk Southern, the stakes for shippers are higher than ever. The call to review the commitments made during the UP-SP merger is a crucial step in ensuring that future consolidation does not undermine competition or the interests of shippers nationwide.

Travel Advisory for Affected Shippers

Shippers who rely on competitive rail access should monitor the ongoing petition process, as it may influence service offerings in the coming months. Any significant changes to the competitive structure could result in shifts in pricing and service delivery, potentially affecting shipping schedules and costs.

For businesses that rely on rail transport, it is advisable to stay informed about the developments of BNSF’s petition to the STB. Understanding the implications of the review and any resulting regulatory changes could help businesses plan ahead and mitigate disruptions.

Conclusion

The petition filed by BNSF Railway with the Surface Transportation Board underscores the critical importance of maintaining competitive conditions in the rail industry. As Union Pacific looks to merge with Norfolk Southern, the need to revisit and enforce commitments made during previous mergers has never been more pressing. The outcome of this petition could have wide-reaching consequences for the future of rail competition and the services provided to shippers across the U.S.