CPKC Urges Regulators to Halt Union Pacific Deal as US Funds Crossing Overhaul

Canadian Pacific Kansas City Ltd. has asked federal regulators to end their review of Union Pacific Corp.’s proposed acquisition of Norfolk Southern Corp., escalating the fight over the largest rail merger in US history.

In a filing with the Surface Transportation Board on Friday, CPKC said the conduct of Union Pacific and its Chief Executive Officer Jim Vena “has undermined the integrity of this proceeding.” Shippers have alleged that Vena used threats and intimidation to discourage critical testimony. Those allegations include remarks at a rail shippers’ conference, and an administrative law judge has ordered the recording of those remarks to be made public.

In a follow-up filing, CPKC said Union Pacific had failed to produce the recording by last week’s deadline and had not appealed the order. It called the refusal “nothing short of contemptuous.”

Union Pacific says the remarks were taken out of context and that it has threatened no one. “Our opponents are afraid to compete,” spokeswoman Robynn Tysver said, adding that more than 500 shippers support the deal. Comments on the merger are due at the board on Nov. 18.

The Federal Railroad Administration, meanwhile, awarded $1.24 billion to 91 projects in 37 states to eliminate or upgrade railroad crossings. The projects are aimed in part at cutting the number of roads blocked by stopped freight trains. That is fewer projects than the 123 funded in the previous round.

The largest grant, 72 million dollars to the Port Authority of Kansas City, will pay for a grade separation that removes three crossings in Kansas City, Missouri. The Texas Department of Transportation won 46 million dollars for an overpass over Union Pacific tracks in Fort Worth.

“These strategic investments will save lives, prevent accidents and reduce delays,” FRA Administrator David Fink said. Transportation Secretary Sean Duffy said the department had invested “nearly $10 billion in American rail this year alone.”