Two of the leading railways in the country may include the first railway from the coast to the coast in the country.
Union Pacific Corp. About an attempt to buy Norfolk South Corp. Tuesday for $ 85 billion of shares and cash. The deal will link more than 50,000 miles across 43 states, and link nearly 100 outlets “and almost a corner of North America” according to a joint statement of companies.
This advertisement follows reports of merging talks between the railway earlier this month.
Some industry sounds already speak against the deal. The country’s largest railway federation in the country said on Tuesday that it will oppose the acquisition when it comes before the Federal Current Transportation Board for review.
The SMART-International Transport Department of the International Association of Mineral Minerals, Minerals, Railways and Transport has issued a press statement expressing concerns about “the real influence that could have this unification on railway workers, safety, service quality and long-term health for the shipping rail industry.”
The reaction of the logistics industry is mixed, as some leaders indicate the operating synergy of the deal that can benefit the broader supply chain. At the same time, the time, there is a doubt that with the low rail competition, savings will go to the company’s final result combined instead of passing it through low shipping rates.
“if [Union Pacific CEO] “Jim in us and his team, they can provide a smooth service from the coast to the coast while the organizers keep competing, and this can honestly turn how American manufacturing competes worldwide, but if this turns that this matter turns into another uniform, we learn anything from the past. The fact that both shares that have been put in the advertisement tell me that the market tells me The difficult questions I am – does this create a real value for customers, or extract more profits from a captive shipment?
Union Pacific shares decreased by 3.4 % to $ 221.46 on Tuesday afternoon, while Norfolk’s southern shares fell by 3.2 % to $ 277.15.
Susan Lasifeld of DC Velocity contributed to this report.
