Title: Union Pacific/Southern Pacific merger: impact on shippers
Abstract: In the Summer of ‘96, Union Pacific Railroad merged with Southern Pacific to create the largest American railroad. Controversy continues to surround the merger. This paper reports results of a recent merger-impact survey. Survey respondents were rail and intermodal shippers. Among the interesting research findings are the following: (1) while shippers report a negative impact due to less rail competition, trackage rights granted to Burlington Northern/Santa Fe have failed to dampen this impact; (2) railroad service has deteriorated, but freight rates have remained stable; and (3) service problems are more severe for rail, as opposed to TOFC/COFC, shippers.