Rail merger review protects Iowa’s economy

When you see a freight train chugging along the tracks, we rarely think about what that train is carrying. But a freight train is an integral piece of our transportation infrastructure, especially here in Iowa. From grain and fertilizer to ethanol and machinery, reliable rail service supports jobs, stabilizes costs and keeps our state competitive in both national and global markets.

President Donald Trump’s recent visit to Iowa highlighted the importance of strong energy and economic future, it is worth underscoring the critical role a competitive freight rail system plays in delivering on those priorities.

Freight rail supports farmers, biofuel producers and countless workers across the heartland. It is essential to keeping costs manageable, supporting jobs and maintaining the competitiveness of Iowa’s communities and industries. Any disruption to this network would ripple through the local economy, trickling down to American consumers in the form of higher prices on groceries, housing, energy and everyday goods.

But disruption could happen if federal regulators don’t take careful consideration with the proposed merger between Union Pacific (UP) and Norfolk Southern (NS). This merger would combine two of the country’s largest freight rail carriers, a move that could reshape the freight system in Iowa and beyond.

The first major decision from the Surface Transportation Board (STB) should give stakeholders a sigh of relief. The STB ruled this month that the companies’ application is incomplete and requested more information. The STB is to be commended for prioritizing responsible oversight. A deal of this magnitude should meet a high bar, and the STB’s deliberate review helps ensure that standard is upheld.

While a roadblock, the STB’s initial rejection doesn’t mean the merger is dead on arrival. The companies are likely to submit a new application, and if accepted, the clock would start on the formal review process. This means the STB’s work is not over.

The UP and NS merger application must prove it will not only protect competition but enhance it. Reduced competition leads to high costs across the board and service disruptions for shippers and communities across America’s heartland. That includes critical energy and agricultural supply chains like coal, ethanol, fertilizer and grain, where reliable rail service keeps prices stable and production moving. We can’t undercut economic growth and energy affordability, especially at time when so many Iowa families are feeling the squeeze in their pocketbooks.

The STB is on the right track, but it must continue to provide a clear example of responsible oversight by scrutinizing this merger’s potential impact on competition, service quality and market fairness. By upholding these standards, the STB can help preserve expectations for regulatory review, support energy affordability, safeguard supply chains and strengthen Iowa’s economy for years to come.

For the STB to approve this merger, it needs to support rural jobs and agriculture, as well as rural energy and its economic future.

Republican state Sen. Annette Sweeney represents District 27 and lives in Iowa Falls.