Sen. Younger: Railroad merger is bad for Mississippi and bad for America ...Middle East

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A proposed railroad merger between the Union Pacific and Norfolk Southern would concentrate an unprecedented share of U.S. freight rail into a single system — and Mississippi’s farmers, manufacturers and ports would feel the impact.

As a state senator, I believe in free markets. In fact, I’ve built my career on this principle. But free markets only work when competitive balance allows small businesses to thrive, industries to grow and hire and consumers to benefit. A merger between the Union Pacific and Norfolk Southern would shift that balance in the wrong direction, and that’s why I oppose the proposed $85 billion merger.  

If approved by the federal Surface Transportation Board, this transaction would create the largest railroad in American history, with a single company controlling roughly 40% of all U.S. freight rail traffic. In an industry where four carriers already handle nearly 90% of all freight, that’s not a merger. It’’s the last step toward a monopoly. To be clear, the people who will pay the price aren’t the shareholders in Omaha or Atlanta, but instead farmers, mill workers and small businesses right here in Mississippi.

Let me tell you what I believe is at stake for our state.

Mississippi’s agricultural producers move billions of dollars of soybeans, corn and cotton by rail every year. Those farmers operate on margins so thin that even modest rate increases can wipe out a season’s profit, especially amid ongoing shifts in global trade dynamics.

The American Farm Bureau Federation has warned that this merger would reduce what little bargaining leverage shippers still have, leaving farm-product customers who can’t easily switch to another mode of transportation increasingly captive to a single carrier’s pricing decisions. Rail rates for corn, soybeans, wheat and fertilizer have already risen significantly over the past decade. Further consolidation isn’t going to reverse that trend.

The same threat hangs over Mississippi’s auto industry. Our state has become a major manufacturing hub for vehicle production, with Nissan in Canton, Toyota in Blue Springs and PACCAR in Columbus helping drive roughly $4 billion and nearly 600,000 vehicles a year out of Mississippi over the last three years. Those plants and their suppliers rely on dependable, competitively priced freight service to move parts in and finished vehicles out.

Sen. Charles Younger, R-Columbus, left, speaks with former state Sen. Jenifer Branning, R-Philadelphia, who is now a Mississippi Supreme Court justice. Credit: AP Photo/Rogelio V. Solis

If this merger reduces competition and gives one carrier more power over rates, routing and service, Mississippi automakers will face higher shipping costs, greater delays, and less leverage when they need to get products to dealers and customers on time. That is exactly the kind of supply-chain risk a manufacturing state like ours cannot afford.

Likewise, the port of Pascagoula and our connections to the broader Gulf Coast port network depend on competitive rail access to stay viable. Norfolk Southern currently provides Mississippi shippers an alternative check on pricing and service quality. Remove that alternative through this merger, and you remove the competitive pressure that helps keep shipping costs in check at our ports. When competition fades at a port, cargo doesn’t stay put — it moves elsewhere. 

I’m not alone in my concerns. 

Conservative commentator Ken Blackwell, a chair at the America First Policy Institute, drew the connection plainly: when competition disappears, what follows is stagnation, higher costs and diminished service. “That’s what happens when competition disappears,” he wrote, “which is exactly the risk posed by the Norfolk Southern–Union Pacific merger.”

This merger was not driven by a clear need to improve service or expand capacity. Instead, it reflects a financially driven consolidation that risks prioritizing returns over reliability and competition. I support healthy markets and strong investment, but those gains should not come at the expense of working Mississippians, small businesses and the industries that keep our state moving.

Unlike most issues, the American people are united in opposition to this deal. A recent national poll found that 71% of Americans oppose this merger. That number holds across party lines. Free markets thrive on competition. Concentrated power works against the people who have the least ability to push back.

Mississippi’s farmers, manufacturers and port communities cannot afford to be collateral damage in a Wall Street transaction. I’m urging the Surface Transportation Board to reject this application and calling on our congressional delegation to make sure Mississippi’s voice is heard loud and clear in Washington. 

Charles “Chuck” Younger, a Columbus Republican, has represented District 17, the Lowndes County area, in the Mississippi Senate since 2014. He is previous chair of the Agriculture Committee and currently chairs the Highways and Transportation Committee in the Mississippi Senate.

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