Concessions should precede rail merger, CMA says

Abstract

Chemical companies have suffered long enough from disrupted service and elevated shipping rates due to relentless railroad consolidation, the Chemical Manufacturers Association says. It has therefore decided to oppose the merger between Burlington Northern Sante Fe railway (BNSF) and Canadian National Railway (CN), announced Dec. 20,1999, unless certain concessions are made. Combined, BNSF and CN have routes that cover about 50,000 miles, employ about 67,000 people, and generate revenues of $12.5 billion. The merger, according to BNSF, would create North America's largest railroad. CMA isn't alone in its opposition to the merger. Many shippers, regulators, legislators, and even rival railroads going through their own consolidations have warned that the BNSF-CN deal may just prolong service problems. The chemical industry, CMA points out, hasn't gotten a break in recent years from problems associated with frequent railroad mergers. The industry's difficulties began with the 1980 deregulation of the rail in...