Rail oversight matters

In the modern age of 18-wheeler trucks and complex interstates, many fail to consider the massive impact of freight rail transportation across our country. Here in South Texas, it plays a critical role. Texas has seen the most railroad mileage of all states for 115 years. During this time, railroads cemented themselves as a critical part of daily life and economic activity. In this region of Texas, freight rail lines move limestone, aggregates, agricultural products, military and consumer goods.

Our local and state-wide freight rail networks are greatly impacted by federal policy decisions. Recently, the Surface Transportation Board (STB) made a major decision that was welcome news for the industry.

Last year, Union Pacific and Norfolk Southern, two of the largest and most recognizable names in freight rail, announced their plan to merge. It didn’t take long for stakeholders around the country to start sounding the alarm. A merger of this size could significantly reduce competition and cause real harm for businesses, shippers and consumers.

The companies filed their application with the STB, the federal regulating body in charge of reviewing and approving the transaction. In an initial decision, the STB determined that the companies failed to present a complete application, thus putting the brakes on the transaction for now. This is a clear indication that the STB isn’t willing to make exemptions for major industry players.

But this is a temporary roadblock, not a final nail in the coffin. This merger is still alive, as the companies are expected to submit an updated application. At that point, the STB’s work will have only just begun.

A rail merger of this scale would have implications for competition, service reliability, pricing and infrastructure investment across Texas. For our producers, shippers, farmers, and employers, freight rail competition directly affects how quickly goods move, the cost of business and how quickly their products can reach national and international markets.

South Texas sits at a key crossroads near San Antonio, where freight flows connect rural production to urban consumption and export gateways. Our agricultural producers depend on predictable freight rail service to move grain and livestock feed. Construction and energy-related industries rely on it to deliver bulk materials efficiently. Small manufacturers choose to operate here in part because access to competitive transportation keeps their businesses running. If service falters, or rates climb due to reduced competition, those costs could ripple across the economy and can end up hurting local jobs, tax bases and families.

The STB was right to determine, on behalf of the nation and local economies, that an application lacking key information cannot be the basis of a decision of this magnitude. But the STB must ensure that they provide a clear, detailed analysis of enhancing competition and service, as well as a plan to protect shippers and jobs.

We are not opposed to innovation or investment in freight rail. Instead, we depend on it. Strong railroads are essential to regional growth, and we value our partnerships with the rail industry. However, those partnerships must be built on transparency and trust.

When Union Pacific and Norfolk Southern submit an updated application for the Board’s consideration, the review must be rigorous, fact-based and attentive to the needs of the communities across Texas that depend on reliable, competitive freight rail access.

Gina Castaneda is a Prominent Conservative Activist for the Texas Public Policy Foundation.