Washington, D.C. — The American Economic Liberties Project today submitted a letter to the Surface Transportation Board regarding the proposed merger between two Class I railroads, Canadian Pacific and Kansas City Southern.
“The railroad industry is already immensely concentrated, with only 7 Class I railroads remaining, and the top 4 controlling over 80% of the market,” said Erik Peinert, Research Manager and Editor for the American Economic Liberties Project. “The lack of competition in the industry has contributed to unnecessary and unpredictable shipping delays, rounds of layoffs for workers, and consistent underinvestment in necessary operating expenses. In today’s environment of supply-chain disruptions, the Surface Transportation Board must block a merger that would bring the number of Class I railroads down to only 6.”
Economic Liberties joins a number of other stakeholders in opposing this merger. Other railroads and shippers reliant on the industry have filed comments highlighting the deal’s anticompetitive nature, and Representative Katie Porter (D-CA) has most recently filed a comment letter to the Surface Transportation Board in opposition to the merger.
Read Economic Liberties’ letter to the Surface Transportation Board on the merger here.
Learn more about Economic Liberties here.
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The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.