Video: Former STB Chairman Questions the UP–NS Merger: “Is It a Solution Looking for a Problem?”

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Faster shipping offers clear advantages, but it may also reduce negotiating power.

I raised this concern with Robert Primus, former chairman of the Surface Transportation Board, during our discussion of the proposed Union Pacific–Norfolk Southern merger. He responded that improved service and reduced customer leverage can occur together. The more complex issue is how regulators should evaluate these outcomes and what recourse customers have if promised benefits are not realized.

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What Problem Does the UP–NS Merger Solve?

Before discussing UP–NS, we went back to Canadian Pacific and Kansas City Southern. Primus explained why he cast the lone dissenting vote, including his objections to the review framework and his concerns about competition, service, and community impacts. He also acknowledged benefits from the combination and said he is not categorically opposed to mergers.

That distinction matters. His challenge to UP–NS centers on proof: what problem requires a merger, which benefits depend on common ownership, and how those benefits would reach customers.

As he put it:

“Is it a solution looking for a problem?”

Customer Leverage, Merger Promises, and What Comes Next

The discussion extends beyond the benefits of a unified route map to the key decisions facing freight customers, railroad operators, and regulators:

• Customer leverage: Could a faster route leave a shipper with fewer practical alternatives?
• Collaboration versus consolidation: Which improvements could railroads deliver without combining?
• Integration risk: What happens when operating practices, terminals, and technology must work together?
• The STB’s responsibility: What should the Board scrutinize, and does it have sufficient resources?
• Short-line exposure: How could a larger Class I partner affect access, bargaining power, and growth?

Primus is critical of the proposal but also acknowledges the Board's professionalism and the value of public scrutiny. His main concern is whether the review will lead to meaningful commitments after approval, rather than just a compelling case in advance.

Does Rail Need a Merger—or a Better Product?

A key moment in our discussion occurred when we shifted focus from the transaction to the broader growth challenges facing the rail industry.

Primus’s argument was straightforward:

“You don’t have to merge to take trucks off the road. You just have to put together a better product.”

Regardless of your position on the merger, it is important to consider what would make rail a better product for the businesses that rely on it.

Watch the full interview on The FreightFA Brief’s YouTube channel for Primus’s perspective on CPKC, UP–NS, and the future of freight rail.

For more freight analysis and tools to support your transportation planning, visit FreightFA.com.

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