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by bpodgursky
327 days ago
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They share essentially zero miles of track or routes. A move only creates a monopoly if it reduces consumer choice. No freight customer is deciding "Oh I can either ship from LA to Seattle, or Miami to DC." They are shipping from one fixed location to a different fixed location. These railroads merging does not reduce their choices or give the combined entity more leverage. |
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If someone on the US west coast wants to ship to the US east (or vice versa) they can pit UP against BNSF, and then NS against CSX. There are a few pairs up because of the two negotiating points:
* UP-NS
* UP-CSX
* BNSF-NS
* BNSP-CSX
If the merger goes through you're now at:
* merged-UPNS
* BNSF-CSX
Do you think UPNS will give a cheaper price for a 'half-trip' and you go to their competitor the other half?
You don't think BNSF/CN/CP aren't looking at CSX right now?