Regulatory Scrutiny Looms as Critics Sound Alarm
In response to growing questions about consolidation, Vena has dismissed fears that the merger would recreate the dominance railroads once held. He has repeatedly argued that trucking—not rail—is the industry’s fiercest competitor, saying deeper integration would help rail carriers “more effectively deliver for customers.”
“Does anybody want to go back to 40 Class I railroads? Absolutely not,” he said at a September investor conference. “Where we are is trucks are our biggest competition.”
But not everyone is convinced. Major labor unions—including SMART-TD and the Transport Workers Union—have vowed to challenge the merger before regulators. Public interest groups have echoed these warnings, and a bipartisan group of U.S. senators recently urged the STB to conduct a rigorous review, citing the potential for service disruptions and harm to agricultural shippers.
The agreement also includes a $2.5 billion breakup fee if the merger collapses.
