UPS Asks 2-Year Ban on New Rail Mergers

WASHINGTON — United Parcel Service, the nation’s largest trucking company and the largest railroad freight customer, urged the Surface Transportation Board to impose a two-year moratorium on further rail mergers.

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UPS said problems resulting from several recent rail mergers have cost the company a lot of money and

lowed freight operations.

A UPS official was among motor carrier and other transportation representatives who testified during the three-day session conducted by the federal agency to discuss the future of the U.S. rail industry. Much of the talk surrounded the proposed $5 billion merger of Burlington Northern Santa Fe and Canadian National railroads, with trucking interests split over its potential effects.

“The integrated nationwide rail system is still digesting the June 1999 Norfolk Southern/CSX carve up of Conrail,” said Arnie Wellman, vice president of public affairs at the nation’s largest parcel deliverer. “UPS was forced at times to divert up to 50% of the traffic, previously handled on the rails by Conrail, to trucks due to the delays and disruptions caused by the integration of Conrail in the NS/CSX operation.

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