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Analysis Warns of 'Disastrous Consequences' From $72 Billion Railway Megamerger
"The last 40 years of railroad consolidation clearly demonstrate how this merger could threaten public safety and harm shippers, workers, consumers, and the broader economy," said an economic analyst.
Oct 21, 2025
A merger between two of America's biggest railroad companies could have "disastrous consequences" for workers and consumers, according to a report out Monday.
In late July, labor unions raised alarm as Union Pacific Railroad announced a $72 billion deal to acquire Norfolk Southern Railway, which, if approved by the US Surface Transportation Board (STB), would make the new entity the largest railroad company in American history, controlling over 50,000 total miles of interstate rail.
The American Economic Liberties Project (AELP), an anti-monopoly think tank, provided more evidence for those concerns with its new analysis.
"A combined Union Pacific-Norfolk Southern will have disastrous consequences: less safe workers and communities, less competition, higher costs, and service disruptions," said one of the report's authors, AELP senior fellow Erik Peinert. "For good reason, there has never been an attempt at a consolidated transcontinental railroad system until now—a scale of railroad consolidation not even met by the railroad barons of the Gilded Age."
As the report explains, America's interstate rail system is dominated by four companies that operate as a pair of "regional duopolies." Norfolk Southern lines stretch across the Eastern US, along with those owned by CSX, while areas west of the Mississippi River are covered by Union Pacific and BNSF.
This already heavily consolidated system is the product of Congress' deregulation of railroads during the 1980s and 1990s, most notably through the replacement in 1995 of the more powerful Interstate Commerce Commission (ICC) with the STB, which has more limited authority to regulate mergers.
"Even by the very lax merger standards of the late 1990s and early 2000s, these combinations were recognized as mistakes with devastating outcomes," the report says. "Shippers reported a deterioration in service, fewer options with higher prices, and the loss of jobs, while workers lost jobs and those who didn't face strenuous working conditions."
Though STB's rules tightened in 2001, requiring mergers to "enhance" competition instead of simply not harming it, the damage was already done. Over the next two decades, the report noted that the top four major railroads came to haul 7% fewer loads while hiking freight rates twice as fast as inflation. This was due in large part to the fact that 50% of customers were now "captive," that is, they had access to only one rail line, compared to just 27% two decades prior.
Another megamerger, the report warns, would cause a "likely permanent loss of competitive rail services for shippers" in large sections of the country, specifically the Midwest, where Union Pacific and Norfolk Southern have overlapping lines.
The deal has been opposed by a consortium of shipping associations, including the Freight Rail Customer Alliance, the American Chemistry Council, and the National Industrial Transport League (NITL), which warned that it would slow down service and lead to price hikes.
Labor unions—including the Teamsters, the Transport Workers Union of America, and the Railroad Workers United—have also opposed the merger, citing the companies' histories of cutting costs by laying off employees and flouting safety standards.
"Historically, rail consolidation results in job loss, diminishing labor power in negotiating better working conditions and pay, resulting in staffing shortages that lead to burnout and increased safety risks for workers and the public," the report says. "And in general, consolidation results in stagnant and reduced wages for workers, as there are fewer buyers for labor and greater leverage for the consolidated companies."
There is also a risk that if the STB approves the merger, it could embolden the other half of the duopoly, CSX and BNSF, to merge as well, creating a national duopoly where "choice and competition would be lost."
In part due to the STB's more stringent rules, no interstate railroads have attempted to merge in the 21st century. However, the Trump administration seemed to give Union Pacific and Norfolk Southern a green light when—just as proceedings for the merger were beginning in late August—President Donald Trump fired Robert Primus, a Democratic member of the STB who had been an outspoken critic of railroad consolidation, which broke a 2-2 tie on the board between Democrats and Republicans.
At the beginning of October, Primus sued the Trump administration, which had not explained his firing other than that he "did not align with the president's America First agenda." After meeting with the CEO of Union Pacific in September, Trump said that the merger "sounds good."
"Our country's supply chain demands that the board be independent and transparent. Congress mandated it 138 years ago," Primus said upon filing the lawsuit. "Failure to do so will negatively affect the network: railroads, shippers, and rail labor alike, disrupting the supply chain and ultimately injecting instability into our nation's economy. This is dangerous, and wrong, and cannot be allowed to happen."
Railroad Workers United said that Primus "was removed not for inefficiency or malfeasance, but for daring to stand for fair competition and consumer interests, a principle too radical for the 'America First' cabal."
Ashley Nowicki, the report's other author and a policy analyst at the AELP, said that the firing of Primus, "who questioned rail consolidation and the railroad's substantial lobbying efforts, raises serious concerns about political interference."
"The last 40 years of railroad consolidation clearly demonstrate how this merger could threaten public safety and harm shippers, workers, consumers, and the broader economy," she continued. "The Surface Transportation Board must show it can operate independently and protect the public interest over Wall Street."
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Rail Workers Warn Union Pacific-Norfolk Southern Merger Would 'Simply Line the Pockets of Wall Street'
Railroad Workers United expressed opposition to any further consolidation of the U.S. rail system—unless it was brought under public ownership.
Aug 11, 2025
An inter-union U.S. rail coalition on Monday announced its formal opposition to Union Pacific's $85 billion bid to purchase Norfolk Southern and any other private consolidation of railroad giants, warning that such mergers serve only to enrich investors at the expense of workers, passengers, and communities across the nation.
Railroad Workers United (RWU)'s steering committee adopted a resolution outlining its opposition to the pending Union Pacific (UP)-Norfolk Southern (NS) deal, noting that rail mergers "have more often than not been fraught with inefficiencies, confusion, service disruptions, clogged terminals, staffing shortages, exhausted workers, and general malaise."
RWU "opposes this UP-NS merger as well as any and all takeovers, mergers, or other combinations of the remaining Class One railroads under the current system of private ownership," the resolution states.
"The only further consolidation of the continent's rail system that RWU would support is one that is publicly owned—how most nations' rail infrastructure is owned and operated today—and where the railroad workers are included in all aspects of managing railroad operations," the document concludes.
"Further corporate rail mergers today will do little for rail development but simply line the pockets of Wall Street investors at everyone else's expense."
RWU joins other prominent rail labor leaders and policy experts who have expressed deep concerns about the proposed takeover, which is part of a wave of mergers in the U.S. industrial sector this year under the Trump administration. The UP-NS merger still must receive federal approval.
"If the Union-Pacific-Norfolk Southern merger is approved, BNSF, the other western railroad—owned by Warren Buffett's Berkshire Hathaway—will almost certainly pursue CSX, the other eastern railroad, to avoid being boxed out," Arnav Rao, a transportation policy analyst at the Open Markets Institute, warned in a piece for Washington Monthly last week.
"If the United States is serious about reshoring manufacturing, it cannot afford to let its rail system become a duopoly," Rao added. "Allowing Union Pacific to absorb Norfolk Southern would leave just two national carriers, each with incalculable leverage over customers, workers, and regulators."
The day the merger proposal was announced last month, SMART Transportation Division (SMART-TD)—the largest railroad operating union in the U.S.—said it has "every intention to oppose" the deal, pointing to UP's record of "hostility" toward organized labor, willingness to lay off workers even during good periods for the industry, and "troubling safety record."
In a statement on Monday, RWU called on "all shipping groups, passenger train advocates, environmentalists, and especially railroad workers and our unions to oppose further mergers of rail corporations."
Pointing to the infamous robber barons of the Gilded Age, RWU organizer Matt Weaver said that "such concentration of wealth and power among a handful of men was not a good idea then and it is not a good idea today."
"They had a stranglehold on the economy and the rail workforce," said Weaver. "Further corporate rail mergers today will do little for rail development but simply line the pockets of Wall Street investors at everyone else's expense."
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The Privatized US Rail System Is a Disaster. A New Report Makes Case for a Public Takeover
A transition to public ownership could create millions of new jobs, curb planet-warming emissions, protect public health, and slash shipping costs.
Sep 17, 2024
In recent years, the United States' rail system has been in the headlines for all the wrong reasons.
In East Palestine, Ohio, a Norfolk Southern train carrying hazardous materials wrecked, sparking a public health crisis and national outcry. More rail workers have been killed on the job in notoriously unsafe conditions. Train after train has derailed.
Such disasters have come as no surprise to rail workers on the frontlines, who have long warned that the corporate-dominated U.S. system is a threat to public safety, employees, and the climate.
But a new report argues it doesn't have to be that way—and envisions an alternative: a publicly owned rail system that saves money, creates jobs, protects workers and the public, and aids the badly needed transition to a green transportation system.
"The structure of the railroad industry in the United States constitutes a massive and ongoing missed opportunity," wrote Kira McDonald, a fellow at the Climate and Community Institute and the lead author of "From Margins to Growth: The Economic Case for a Public Rail System," an analysis published Tuesday by the Public Rail Now campaign and Railroad Workers United.
"Freight service is in decline, and passenger service lags enormously behind international peers," McDonald continued. "Long-term trends of decreased freight service, decreased market share, and decreased employment have accelerated in recent years, particularly with the advent of precision-scheduled railroading (PSR) across most Class 1 railroads. In many ways, these are predictable consequences of how the industry is structured: as a set of massive, largely underregulated, regional duopolies."
"Public operation predominates among the most successful and intensely used rail systems internationally."
Just a handful of private companies control the majority of the U.S. freight rail network, leaving large swaths of the country with access to just one or two privatized railroads. The heavily concentrated rail industry's model of maintaining "supernormal profits" and delivering for shareholders by slashing investment, McDonald wrote, runs directly counter to public priorities, including expanded passenger service.
Amtrak, the United States' passenger rail corporation, is managed as a for-profit company and "runs passenger service on tracks that are typically owned by the private Class 1 railroads," McDonald observed. While private railroads are by law required to give preferential treatment to Amtrak's passenger trains over freight, "this has rarely been enforced," leading to often terrible performance.
Bringing the U.S. rail system under public ownership, the new report argues, would be transformational, allowing for greater investment in passenger and freight rail and thus helping to shift away from costly and heavily polluting on-road transportation.
The report estimates that under an ambitious reform scenario that entails a publicly owned high-speed passenger rail network and other major developments, the U.S. by 2050 "could save up to $400 billion annually on shipping costs; avert over $190 billion annually in averted public health, environmental, and fiscal costs; create 180,000 new jobs in the railroad sector; and create up to four million other new jobs throughout the economy through indirect economic effects."
Transforming the U.S. rail system is almost certainly a "climate necessity," McDonald argued, noting that "current plans to decarbonize transportation within the U.S., particularly on a timeline consistent with even 2°C of warming, are extremely tenuous, to the point of implausibility."
Massively shifting passenger and freight transport to rail could help the U.S. avoid the "equivalent to 2% of the world's remaining carbon budget to maintain a 50% chance of staying within 1.5°C of warming, as of 2023," McDonald wrote.
While the report does not detail precisely how U.S. railroads should be brought under public ownership, it notes that "a comparative
analysis of railroad institutions and international practices indicate the promise of public ownership, particularly when paired with
integrated public operation."
"Public operation predominates among the most successful and intensely used rail systems internationally," pointing to Switzerland, South Korea, and Germany as examples of countries with rail systems that are largely owned by the public.
Tommy Carden, associate director of the Green Locomotive Project at Warehouse Workers for Justice, said in a statement that the new report "clearly demonstrates that under public ownership, working Americans would benefit enormously."
"Class 1 railroads are hoarding wealth that could be used to invest in and expand the rail industry," said Carden. "We must continue to advocate for the massive amounts of infrastructure that rail electrification will require while also pushing for the adoption of low-emission locomotives built by union workers as we continue to work towards achieving full rail electrification."
Eric Basir, a union steward with the Amalgamated Transit Union Local 308, said he has witnessed firsthand "how private ownership of railroads is responsible for the destruction of our environment and good union jobs."
"It will only worsen," Basir added, "until the people who live in this country have control and accountability powers over the railroads."
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New Report Argues Private Rail Is a Train Wreck, Public Ownership Needed
"Our nation's rail system is in disarray," an expert said. "Dominated by a small group of giant for-profit companies, it is imperiling the health and safety of workers and communities."
Jul 01, 2024
Railword Workers United and a Brown University fellow on Monday published a white paper calling for the institution of a public rail system to replace America's corporate railroad giants.
The 110-page white paper, written by Brown University undergraduate Maddock Thomas and published as part of RWU's Public Rail Now campaign, argues that U.S. railroad corporations such as BNSF, Union Pacific, Norfolk Southern, and CSX have failed on safety, workers' rights, service, electrification, and expanding capacity to meet rising freight demand.
Instead of using profits to invest in critical infrastructure, the railroads have lined shareholder pockets with dividends and buybacks, Thomas wrote, advocating for a public system where that money could be spent to improve safety and decarbonize freight transport, among other goals.
Thomas M. Hanna, research director at the Democracy Collaborative, called for democratic, public ownership of railroads in a Public Rail Now statement.
"At a time when we need it most, our nation's rail system is in disarray," Hanna said. "Dominated by a small group of giant for-profit companies, it is imperiling the health and safety of workers and communities, providing poor service for customers, abandoning growth and development, and stalling the expansion of passenger rail services."
"These lands were given under a promise of providing a 'public highway' operated in the public interest, a deal that today's Class 1s have inherited along with their predecessors' easements... Perhaps it is time for Congress to retake control of our public rights-of-way."
The frequency of rail accidents rose by 28% between 2013 and 2022, which many critics attribute to the Precision Scheduled Railroading system that's become the industry standard. Thomas wrote that the system prioritizes "speed over safety."
Despite the alarming trend, the industry has lobbied against safety-minded legislation such as the Railway Accountability Act proposed by senators last year following a disastrous derailment in East Palestine, Ohio. The industry pushed against reforms strongly in the year after the disaster and that lobbying has continued in recent months, according to Jacobin.
The current system has led to precarity and difficulty for railway workers. The number of jobs in the industry has gone down over the last 10 years, with nearly 30% of workers having been laid off since 2015, Thomas found. Railway workers also face tough conditions, with unpredictable schedules and forced overtime—some of the subjects of a 2022 labor dispute that ended with the controversial intervention of President Joe Biden.
The white paper emphasizes the underinvestment that private rail ownership has allowed. The U.S. Department of Transportation estimates that rail freight will nearly double by 2035. This growing demand has long been understood, but not acted on. A 2008 report commissioned by the Surface Transportation Board, a federal agency, found that the aforementioned major rail companies—called "Class 1" railroads—needed to spend $135 billion by 2035 to build up infrastructure to meet incoming demand.
They did not, the white paper says.
"Instead, the Class 1s spent $196 billion on buybacks and dividends for shareholders between 2010 and 2020," Thomas wrote.
Thomas presented a historical case for public rail. In the late 1800s, hundreds of millions of acres of public land, as well as other subsidies, were granted to railroad companies on the condition that their services benefited the public. Thomas wrote that the land grants were provided with the understanding that the railways would be like public highways, and that the federal government to this day "retains a reversionary interest of ownership and control" over the rights-of-way.
"There is a compelling case that every railroad that sits on a right-of-way granted from Congress merely possesses an easement over public land," he wrote. "Furthermore, Congress reserved the right to 'add to, alter, amend' the terms of its land grants. Ultimately, these lands were given under a promise of providing a 'public highway' operated in the public interest, a deal that today's Class 1s have inherited along with their predecessors' easements. One might argue that the Class 1s failed to live up to this deal and that perhaps it is time for Congress to retake control of our public rights-of-way."
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'Derail Batory': Senate Urged to Reject Ex-Trump Official for Amtrak Board
"His record clearly demonstrates a prioritization of carrier profits over the safety of rail workers and the traveling public," said Railroad Workers United.
May 07, 2024
An alliance of unionized rail workers on Tuesday demanded that the U.S. Senate reject President Joe Biden's nomination of former Trump administration official Ronald Batory to serve on the board of Amtrak, the nation's passenger rail company.
In a statement, Railroad Workers United (RWU) said Batory's tenure as head of the Federal Railroad Administration (FRA) under former President Donald Trump "was marked by policies favoring 'operational efficiencies' (i.e., corporate profits) over the safety and well-being of rail workers and the public."
"Notably, under his leadership, FRA attempted to override state laws mandating two-person train crews, promoting instead the adoption of single-person crews nationally," said RWU. "This push was part of a broader deregulation agenda, ostensibly aimed at reducing operational costs for the monopoly of carriers at the potential expense of safety and labor protections."
"Moreover, during the Covid-19 pandemic, Mr. Batory oversaw the FRA's issuance of emergency waivers that suspended numerous long-standing safety regulations," the group added. "These waivers were granted rapidly with limited opportunity for stakeholder input, raising significant concerns among rail labor organizations about their sweeping breadth and the lack of stringent oversight, which could compromise rail safety and worker security."
The statement urges rail workers across the country to contact their senators and demand they block Batory's nomination.
"His record clearly demonstrates a prioritization of carrier profits over the safety of rail workers and the traveling public," said RWU, calling the Senate to "derail Batory."
“Railroad Workers United urges all members of #raillabor to actively contact their Senators and argue against Mr. Batory's confirmation. His record clearly demonstrates a prioritization of carrier profits over the safety of rail workers and the traveling public.” #DerailBatory pic.twitter.com/8kVNNsBihD
— Railroad Workers United ✊ (@railroadworkers) May 7, 2024
Rail workers reacted with outrage last week after Biden announced Batory's nomination, given his ties to the railroad industry and policy moves under an administration whose deregulatory spree helped lay the groundwork for the toxic crash in East Palestine, Ohio last year.
Amtrak's board of directors is required to be both geographically and politically diverse. Greg Regan, president of the Transportation Trades Department of the AFL-CIO, noted in a statement Monday that while Batory "would never be our choice, we recognize that federal law requires the board to have three members from the minority party, in this case the Republican Party."
"Since the law also requires the president to consult with the Senate minority leader when making minority party appointments, the breadcrumb trail for this transparently anti-labor nominee leads directly to Senate Minority Leader Mitch McConnell's doorstep," said Regan, contending that the Kentucky Republican "owns this choice," not Biden.
In its statement Tuesday, RWU acknowledged that "some may argue that the Biden administration is procedurally obligated to forward this nomination."
But the group said Batory's nomination nevertheless "starkly contradicts the administration's stated commitments to worker safety and robust regulatory standards."
"The nomination of Mr. Batory, whose regulatory philosophy aligns with reducing workforce protections and operational oversight, does not serve the public interest," said RWU.
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'Betrayal of Labor': Biden Nominates Ex-Trump Official to Amtrak Board
"This appointment reads less like an oversight and more like a slap in the face to those who championed worker safety and stronger regulations," said Railroad Workers United.
May 03, 2024
Rail workers voiced outrage Thursday after U.S. President Joe Biden quietly nominated a former Trump administration official with a history of supporting deregulation to Amtrak's board of directors, a move that one alliance of unions called a "slap in the face."
Ronald Batory, who has ties to the rail industry, served as head of the Federal Railroad Administration (FRA) under former President Donald Trump, who aggressively slashed transport and rail safety regulations during his four years in office—laying the groundwork for disasters such as the East Palestine, Ohio crash.
The Associated Press notes that before serving at the FRA, Batory was president and chief operating officer of Conrail, "a service provider for the CSX and Norfolk Southern freight railroads." Norfolk Southern operated the train that derailed in East Palestine last year, spilling toxic chemicals and sparking a public health crisis.
In 2019, Batory faced backlash from rail unions for withdrawing a proposed rule aimed at establishing mandatory crew sizes on freight and passenger trains.
"President Donald Trump, [Department of Transportation] Secretary Elaine Chao, and FRA Administrator Ron Batory have taken sides, and it's with the railroads that want to eliminate operating crew members to the detriment of rail safety and to the detriment of the communities through which our members operate trains," SMART Transportation Division said at the time.
"Clearly, the railroad CEOs have their folks in power with President Trump and his administration," the union added. "This action should put an end to any thoughts that this president and this administration is supportive of railroad workers."
Earlier this month, Biden's FRA finalized a rule requiring two-person crews on trains with limited exceptions. The reform received praise from railway workers and their allies.
But an organization representing rail workers across the U.S. said Biden's decision to nominate Batory to the board of Amtrak—the nation's passenger railroad company—calls into question the president's commitment to worker and rail safety.
"Batory, renowned for his role in loosening rail safety regulations during a tenure that critics link to subsequent rail disasters like East Palestine, is now poised to shape Amtrak's future," Railroad Workers United (RWU) wrote on social media late Thursday. "Remember the 2022 rail workers' debacle? When labor unions hoped for Biden's support, and instead got a presidential shove to accept a contract that many felt skirted around their key demands? It's almost poetic then, how Biden's nomination of Batory seems to echo that same disregard."
"The message to labor seems clear: Loyalty and votes might get you a seat at the table, but don't count on staying there if bigger political machinations are at play," RWU added. "With Batory's track record, this appointment reads less like an oversight and more like a slap in the face to those who championed worker safety and stronger regulations. It's as if the administration is keen on maintaining a tradition—disappointing the very base that arguably played a pivotal role in securing their position. Let's brace ourselves for more 'strategic' decisions that may just reroute us back to the past, disregarding those who handle the daily grind on our railroads."
Well, it seems @POTUS has truly outdone himself this time, nominating Ronald L. Batory—yes, the deregulation aficionado from the Trump era—to the @Amtrak Board of Directors. https://t.co/dVMWEApL5D
— Railroad Workers United ✊ (@railroadworkers) May 3, 2024
Biden also nominated Elaine Marie Clegg, the CEO of Valley Regional Transit, to an Amtrak board position.
Clegg and Batory must be confirmed by the U.S. Senate.
Railway Age contributing editor Frank Wilner wrote Thursday that Batory could face a Democratic "hold" on his nomination in the Senate "given that many in rail labor are unhappy" with his withdrawal of the train crew rule during his tenure as FRA administrator.
Ross Grooters, a Brotherhood of Locomotive Engineers and Trainmen member and co-chair of RWU, said Thursday that Biden's nomination of Batory "is a betrayal of labor, arguably bigger than the 2022 contract dispute."
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Cincinnati Southern Railway Could Be a Boon for the City—If We Don’t Vote to Sell It
The mayor’s claim that owning the line makes no difference to restoring passenger service couldn’t be further from the truth.
Nov 04, 2023
Cincinnati was founded as a river town, but it became a proud railroad city with a strong history of passenger rail. At its peak, Cincinnati Union Terminal served 216 trains per day—a far cry from the current Cardinal service that comes only three days a week.
It’s time to reclaim that legacy. There are already great plans to connect Cincinnati with the North, and if we restore passenger service to the South, we can fill a critical gap in Amtrak’s Connect U.S. 2035 plan. With the only municipally owned railroad in the United States, Cincinnati has a unique opportunity to do just that. But it must keep the railroad in public hands.
While many know Glenn Miller’s famous song “Chattanooga Choo Choo,” few remember that the original Chattanooga Choo-Choo was the name of the Cincinnati Southern’s inaugural passenger train to that very city. A number of other historic “named trains” have utilized the Cincinnati Southern as part of their route: the Royal Palm, the Queen and Crescent Limited, the Carolina Special, and the Ponce de Leon. These trains operated between Cincinnati and destinations to the south such as Atlanta, Jacksonville, New Orleans, and Charleston.
Historically Norfolk Southern is the worst host railroad for Amtrak and its rail passengers: Over the past four years, Norfolk Southern has caused the most minutes of delay per mile.
The mayor’s claim that owning the line makes no difference to restoring passenger service couldn’t be further from the truth. As the public owner of the line, Cincinnati can declare its right to run passenger trains over the tracks as a condition of the lease, just like Georgia did in its lease of the Western & Atlantic to CSX. If the railroad is sold to Norfolk Southern, that option slips away forever.
Without public ownership, we’d have to beg. Negotiating trackage rights with private railroads is a painful process. Railroads drag out negotiations, demand Amtrak or the state pay for infrastructure improvements, and then flout federal law by denying passenger trains priority.
Cincinnati can help avoid this headache by simply saying: “If you want to use our rail line, we get priority for any passenger trains.” This is key, because historically Norfolk Southern is the worst host railroad for Amtrak and its rail passengers: Over the past four years, Norfolk Southern has caused the most minutes of delay per mile. If the city got serious about passenger service, it could add a financial penalty for each minute of delay caused by Norfolk Southern to trains on the line as a lease condition, since violating federal law doesn’t seem to bother them.
Restoring passenger service on the Cincinnati Southern would more than halve rail travel times between Cincinnati and Atlanta from 26 hours, with a transfer in D.C. or Virginia, to 12.5 hours on a direct train. If we can reach the fastest scheduled 1950s times for the route, travel between Cincinnati and Atlanta could be as quick as 11 hours by train. Travel from Atlanta to Chicago would also be reduced by more than 12 hours.
Expanded passenger service would be a boon for Cincinnati’s economy, bringing new investment and making the city more attractive to young professionals, as well as more accessible for those living without cars. Passenger rail is also key to achieving the city’s Green Cincinnati Plan for carbon neutrality by 2050, as a more environmentally friendly form of transportation.
The commute between Cincinnati and Lexington would be made much more pleasant by rail. The 1952 timetable for Southern Railway shows this route scheduled for an hour and fifty minutes, making it competitive with driving—especially with traffic. With modern locomotives and track improvements, as well as proper incentives for Norfolk Southern to give passengers priority, I’d wager that this trip could be done in an even better time.
Cincinnati’s unique railway can return the city to its historic role as the “Gateway to the South.” To make that a reality, we must vote No on Issue 22 to keep the Cincinnati Southern Railway in public hands.
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After East Palestine, Will Cincinnati Voters Stop Norfolk Southern From Buying Their City's Railway?
"The citizens of Cincinnati are at a historical crossroads," wrote one locomotive engineer of Issue 22. "The choice they make could either uphold a legacy of public ownership that has withstood the test of time or cede control to private interests."
Nov 02, 2023
Cincinnati voters will decide next Tuesday whether to allow the company responsible for the toxic train crash in East Palestine, Ohio earlier this year to purchase the last remaining municipally owned interstate railroad in the United States.
Norfolk Southern has been working to buy the Cincinnati Southern Railway (CSR) for years, but the effort largely flew under the national radar until one of the company's trains derailed in East Palestine in February 2023, unleashing chemical pollution that sparked major public health concerns and put the small Ohio town in the spotlight.
The wreck brought renewed scrutiny to Norfolk Southern's lax safety procedures, poor treatment of workers, and long history of lobbying against basic regulatory measures, making the hugely profitable corporation a poster child of rail industry greed and dysfunction.
Concerns about Norfolk Southern's practices in the wake of the East Palestine disaster have fueled opposition to the company's proposed $1.6 billion purchase of the CSR, which has been in public hands since its construction in the late 1800s.
The unelected Cincinnati board of trustees that manages the 338-mile CSR and the city's Democratic mayor announced and celebrated the proposed sale last November, setting the stage for the November 7 vote on Issue 22.
Cincinnati Interfaith Workers Center organizer Magda Orlander told In These Times on Wednesday that public opposition to the proposed sale has been "snowballing" since early voting began in early October. The grassroots group Derail the Sale has formed in opposition to Issue 22 and a number of local organizations, including the Cincinnati NAACP and Neighborhoods United Cincinnati, have joined the fight.
"When a big corporation, with all these investment interests behind it, throws around a wad of cash like that, it's pretty clear who's getting duped," said Orlander, referring to the $4.25 million that Norfolk Southern has spent trying to build support for the sale, which recently won the approval of federal regulators.
At a rally against the sale last month, Brian Garry, the executive director of Neighborhoods United Cincinnati, said that the CSR is "the largest asset that we own."
"It's like our family savings and they're just selling it," said Garry. "They say they’re building Cincinnati's future? They're selling Cincinnati's future."
Cincinnati, which is roughly 300 miles from East Palestine, has been leasing its railway to Norfolk Southern for decades, and the existing agreement with the company currently brings the city roughly $25 million a year.
If the sale is approved, the $1.6 billion in proceeds would be placed in a trust fund operated by the unelected Cincinnati Southern Railway Board of Trustees, which unanimously approved Norfolk Southern's purchase last year.
Proponents of the sale have touted its potential economic benefits for the city, which—thanks to a recent change to a 150-year-old statute—could spend the sale revenue on infrastructure improvements.
But critics of the deal have cast doubt on the supposed financial boon the sale would bring to Cincinnati and raised concerns about potential economic risks.
"Money flowing into Cincinnati’s coffers under the current CSR lease agreement guarantees $25 million per year for infrastructure improvements in the city," Werner Lange, a retired educator with five grandchildren living in Cincinnati, wrote in a May op-ed for the Cincinnati CityBeat.
"Under the purchase agreement signed last November, there is absolutely no such guaranteed income, only speculation," he added. "According to recent state law, should there be more than a 25% loss on speculative investments made by appointed financial managers from the $1.62 billion sale price, then the city receives nothing—nada—until the stock market loss is rectified, if ever. A lesson often painfully learned too late, amplified by recent bank failures, is that a bird in hand is worth more than two in the bush."
"The Cincinnati Southern Railway is more than just a railroad; it's a testament to Cincinnati's visionary past and a beacon for a self-reliant future."
Safety and health concerns have also animated opposition to the sale.
Last month, leaders of the Unity Council for the East Palestine Train Derailment—a community oversight committee formed in the wake of the February crash—implored Cincinnati voters to vote no on Issue 22, arguing that "there is no benefit from the sale of Cincinnati Southern Railway that outweighs the health of your families."
"Do not make the same mistakes our community did and ignore the dangers associated with Norfolk Southern," the council's president and secretary wrote in an op-ed for the Cincinnati Enquirer. "Open your eyes, look around you, research the facts to make an informed decision for your families' health, your children's health, and the health of future generations. We never want another community to feel the earth-shattering words of the Centers for Disease Control telling you that you all have had chemical exposure and they don't know what to do about that, but they do know how to treat the cancers it could cause in the future."
While the sale has garnered support from some unions, including the Brotherhood of Locomotive Engineers and Trainmen, other rail unions and labor activists in Ohio and around the country have raised alarm about the prospect of Norfolk Southern buying up the nation's only municipally owned interstate railroad.
Railroad Workers United (RWU), an inter-union alliance representing rail workers across the United States, has helped organize local opposition to the Norfolk Southern sale, describing Issue 22 as a choice between public ownership of a critical community asset and the "short-term gain" offered by privatization. RWU supports the full nationalization of U.S. railroads.
Jason Doering, a locomotive engineer and labor activist, wrote in a social media post on Wednesday that "the citizens of Cincinnati are at a historical crossroads."
"The choice they make could either uphold a legacy of public ownership that has withstood the test of time or cede control to private interests, potentially eroding the very fabric of community self-determination and financial prudence that has defined Cincinnati for over a century," Doering wrote. "The Cincinnati Southern Railway is more than just a railroad; it's a testament to Cincinnati's visionary past and a beacon for a self-reliant future."
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Norfolk Southern Wants to Buy the Only Municipally Owned Railroad in the US. Voters Can Stop It.
"The citizens of Cincinnati would be wise to hold onto their railroad infrastructure as their forefathers understood the perils of private rail ownership. They would not be well served by this sale."
Jul 25, 2023
The company responsible for the toxic train derailment in East Palestine, Ohio, is on the verge of buying up the only municipally owned interstate railroad in the United States.
One remaining barrier to Norfolk Southern's $1.6 billion purchase of the Cincinnati Southern Railway (CSR) is the Ohio city's voters, who will have an opportunity to reject the proposed sale on the November 7 ballot.
Norfolk Southern first expressed interest in buying the 337-mile railway outright in 2021, well before the East Palestine derailment earlier this year brought closer scrutiny to the rail giant's history of fighting safety regulations at the expense of workers and communities. Cincinnati has leased the railway to Norfolk Southern for decades, and the arrangement currently brings the city around $25 million a year.
City officials—including the unelected board of trustees that manages the railway—formally announced the proposed sale last November, setting off a lengthy process during which lawmakers changed 150-year-old statutes to allow proceeds from the transaction to be used for purposes other than paying off debts, such as infrastructure improvements.
The $1.6 billion from the sale would be placed into "a trust fund of professionally managed financial assets," according to the five-member board of trustees, which would oversee the fund. The board unanimously approved the sale in a November vote.
On July 13, the board recommended that the proposed sale be placed on the ballot this coming November. The sale must also win approval from the U.S. Surface Transportation Board, which is assessing the deal and expected to issue a decision by September.
Aftab Pureval, Cincinnati's Democratic mayor, called the potential sale "a historic opportunity to deliver great value to citizens of Cincinnati and realize a substantial return on the investment and foresight of our predecessors."
But some local residents have voiced sharp disagreement, suggesting the deal could face resistance come November. Madeline Fening of the Cincinnati CityBeat recently observed that "the events in East Palestine have completely changed the way residents discuss the vote."
The November ballot language will explicitly identify Norfolk Southern as the prospective buyer.
Emily Spring, a Cincinnati resident and community organizer, said last week that "selling the CSR to Norfolk Southern would not only hurt the railroad's workers and surrounding communities—neighborhoods historically affected by unfair economic and political practices—it would give the power that we have as Cincinnatians to yet another billionaire corporation that continues to put profits over people."
"I, along with others in my community, am prepared to block this sale and fight to keep our railroad in the hands of Cincinnatians," Spring added. "For Cincinnati, for our environment, for rail workers, and for our communities, it's time to derail this sale."
"It would give the power that we have as Cincinnatians to yet another billionaire corporation that continues to put profits over people."
Werner Lange, chair of the Ohio Peace Council and a retired educator with five grandchildren living in Cincinnati, argued in a recent op-ed that the pending sale is a "Faustian bargain, one that sacrifices something of inestimable value for insecure material prospects."
"The CSR is a jewel in the Queen City treasure, and has been so for over 150 years," Lange wrote. "As the only municipally-owned long-distance railway in the nation, it confers a unique and enviable status upon Cincinnati. It shines as a beacon of hope and harbinger of things to come in an industry increasingly plagued with catastrophic derailments by privately-owned railroad companies, such as the notorious Norfolk Southern."
Lange cast doubt on proponents' case that the sale would be an economic boon for the city, writing that "according to recent state law, should there be more than a 25% loss on speculative investments made by appointed financial managers from the $1.62 billion sale price, then the city receives nothing—nada—until the stock market loss is rectified, if ever."
"Norfolk Southern clearly qualifies as a poster child for corporate greed and neglect of community need, making it unworthy as a buyer of the cherished Cincinnati Southern Railway," Lange added.
The rail giant's accident rate has risen three times faster than the industry average over the past decade, surging by roughly 81% between 2013 and 2022 as its profits have steadily grown, hitting an annual record last year.
Like other rail giants, Norfolk Southern has lobbied furiously against even modest safety improvements at the state and federal levels. As The Lever reported in the wake of the February derailment in East Palestine—which is still reeling from the toxic crash—Norfolk Southern "helped kill a federal safety rule aimed at upgrading the rail industry's Civil War-era braking systems."
The company's CEO has also declined to support federal legislation aimed at preventing a repeat of the East Palestine disaster.
Railroad Workers United (RWU), an alliance representing rail workers across the United States, is among the organizations speaking out against the proposed sale of the Cincinnati railway to Norfolk Southern, calling it the latest example of industry privatization and consolidation.
Last month, RWU—which supports nationalizing the U.S. rail industry—adopted a resolution describing the CSR as "an example of publicly owned rail infrastructure in North America that needs to be expanded, not eliminated."
Matt Weaver, a maintenance-of-way worker and member of RWU's steering committee, said in a statement that "the rail industry has robbed the American people blind for 150 years now."
"Millions of acres of land and massive subsidies were given to the 'Robber Barons' of old," said Weaver. "Today's rail industry is the same, indifferent to the needs and concerns of their own workers and customers, let alone the nation. The citizens of Cincinnati would be wise to hold onto their railroad infrastructure as their forefathers understood the perils of private rail ownership. They would not be well-served by this sale."
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Derailment Spree Proves Railway Regulations Urgently Needed, Say Union Members
"These companies siphon billions into share buybacks, dividends, and bonuses rather than into the vital maintenance and infrastructure growth we need to build a safe, modern, and thriving rail industry," said one worker.
Apr 03, 2023
After at least six major freight train derailments occurred across the United States over the past week, the need for stronger rail safety rules couldn't be clearer, an interunion alliance of rail workers said Monday.
"The recent uptick in derailments across the U.S. highlights the dire need for stricter regulations on the length and weight of trains, as well as a focus on preventing unsafe operational practices such as precision scheduled railroading (PSR) which prioritizes short-term financial gains for Wall Street over the safety of communities and railroad workers," Jason Doering, a locomotive engineer and general secretary of Railroad Workers United (RWU), said in a statement.
The past week "was not a good one" for the nation's Class 1 rail carriers, RWU observed.
On Sunday, March 26, a Canadian Pacific train carrying hazardous materials careened off the tracks outside Wyndmere, North Dakota, spilling liquid asphalt and ethylene glycol and releasing propylene vapor.
Last Monday, a Union Pacific iron ore train reached 118 miles per hour as it ran away down Cima Hill in the Mojave Desert before wrecking on a curve, destroying two locomotives and 55 cars in San Bernardino County, California.
On Wednesday, a Canadian National iron ore train derailed in Butler County, Pennsylvania.
On Thursday, a BNSF train carrying ethanol and corn syrup crashed near Raymond, Minnesota, causing a fire that forced local residents to flee.
On Friday, a Norfolk Southern train went off the tracks in Irondale, Alabama.
One day ago, a train operated by the Class 2 regional Montana Rail Link—soon to be owned by BNSF—derailed on the banks of the Clark Fork River in Paradise, Montana.
"The recent uptick in derailments across the U.S. highlights the dire need for stricter regulations on the length and weight of trains, as well as a focus on preventing unsafe operational practices such as precision scheduled railroading."
"Rail workers are not surprised to see the dramatic increase in rail incidents following the widespread cuts to the industry," said locomotive engineer and RWU steering committee member Paul Lindsey.
"Each year these companies siphon billions into share buybacks, dividends, and bonuses rather than into the vital maintenance and infrastructure growth we need to grow a safe, modern, and thriving rail industry," Lindsey added.
Norfolk Southern has become the poster child for freight industry greed as the toxic aftermath of February's fiery train derailment and ensuing chemical spill and burnoff continues to unfold in East Palestine, Ohio.
Questioned last month at a U.S. Senate hearing about the ongoing public health and environmental disaster, Norfolk Southern president and CEO Alan Shaw refused to commit to giving workers seven days of paid sick leave or halting stock buybacks.
More Perfect Union has calculated that payouts to Norfolk Southern's shareholders soared by more than 4,500% over the past 20 years, from $101 million in stock repurchases and dividend bumps in 2002 to $4.7 billion in 2022.
Shaw also refused to commit to ending PSR, the profit-maximizing scheduling system that forces fewer workers to manage longer trains in less time, even though unions and progressive lawmakers argue the Wall street-endorsed model makes the U.S. rail system more dangerous and contributes to the 1,500-plus derailments seen nationwide each year.
Although Norfolk Southern epitomizes how railroad executives prioritize profits above all else, the corporation is far from alone in pushing for deregulation and implementing anti-worker, pro-investor policies.
An OpenSecrets analysis published last month found that the rail industry spent more than $713 million lobbying against enhanced rail safety rules at the federal and state levels between 2002 and 2022. Top spenders include the Association of American Railroads trade group, CSX, Union Pacific, Norfolk Southern, and BNSF's parent company Berkshire Hathaway, which is owned by billionaire Warren Buffett.
While RWU has made the case for nationalizing the railroads, it has also outlined a plan for reforms that can be quickly implemented in the absence of such a sweeping transformation. Specific provisions the alliance has called for include sufficient staffing; limits on train length and weight; adequate maintenance and inspections; and better training and employee benefits.
Last week, Sens. John Fetterman (D-Pa.), Bob Casey (D-Pa.), and Sherrod Brown (D-Ohio) introduced the Railway Accountability Act, which includes some of the measures sought by RWU and is supported by unions including the Transport Workers of America (TWU), the National Conference of Firemen & Oilers (NCFO), and the International Association of Sheet Metal, Air, Rail, and Transportation Workers-Mechanical Division (SMART-MD).
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