The proposed Union Pacific + Norfolk Southern merger has been framed as a means of establishing more competition among railroads, but is this message supported by the math? In “The Importance of Being Competitive”, David is joined by guest host Dr. Jason Miller, a professor of Supply Chain Management at the Broad College of Business at Michigan State University, to help break down the logic behind this proposed deal. Jason argues that the rail industry’s volume challenges will not be solved through consolidation.
David + Jason examine whether a merged UP + NS truly creates value for shippers, unlocks new rail conversion opportunities (spoiler alert: Jason doubts it), + what it means for one carrier to control over 40% of many commodities tracked by the STB. Is this merger really about competition or just the appearance of it?