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UPDATE 1-U.S. House Transportation chief opposes CP, Norfolk rail merger

Published 2016-04-05, 10:27 a/m
© Reuters. UPDATE 1-U.S. House Transportation chief opposes CP, Norfolk rail merger
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(Adds fresh quotes and details from paragraph 2)
WASHINGTON, April 5 (Reuters) - The Republican chairman of
the U.S. House Transportation and Infrastructure Committee
announced his opposition on Tuesday to a proposed railroad
merger between Canadian Pacific Railway Ltd CP.TO and Norfolk
Southern Corp NSC.N .
"I do not believe it is in the best interests of the U.S.
freight transportation system, railroad employees, rail shippers
and the short line railroads," Representative Bill Shuster said
in a statement.
"I have expressed my concerns to the appropriate federal
agency and I believe it is time for all parties to move on from
hypothetical merger proposals and focus on improving the
transportation of goods and products to help grow the American
economy," the Pennsylvania Republican said.
His opposition could resonate with the U.S. Surface
Transportation Board, a regulatory body that has said it will
not approve a major railroad merger shown not to be in the
public interest. However, the STB has not received an
application seeking approval for a merger between CP and Norfolk
Southern, according to the board's website.
Shuster said Canadian Pacific has been actively pursuing a
merger in the United States since 2014 and was rejected by CSX
Corp CSX.O before making three different proposals to merge
with Norfolk Southern (NYSE:NSC).
"A strong, healthy and well-functioning freight rail system
is critical to the movement of goods in this country," he said
in his statement.
"However, CP's pursuit of a merger over the last two years
has done nothing but create uncertainty in the rail industry,
and there continues to be no clear path forward for such an
arrangement."

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