STB orders Union Pacific to make alleged rate hike threat video public
Rail regulator rejects railroad’s appeal in dispute over remarks allegedly threatening shippers opposed to Norfolk Southern merger. The post STB orders Union Pacific to make alleged rate hike threat video public appeared first on FreightWaves .
The Surface Transportation Board has mandated Union Pacific to disclose a video of CEO Jim Vena's statements during a shipper conference, rejecting the railroad's appeal in a dispute over whether he threatened customers opposing its proposed acquisition of Norfolk Southern. The board's decision, made on November 4, maintains a ruling that required the recording to lose its confidential designation.
This case has sparked concerns about transparency in the merger review, with the regulator expressing "serious concerns" about Union Pacific's potential influence on stakeholder input for the $85 billion transaction. The recording, captured in March at the Southwest Association of Rail Shippers' annual conference in Houston, features Vena's address to the audience.
Rival Canadian Pacific Kansas City requested the public release, arguing that Vena's remarks about potentially raising rates for shippers opposing the merger discouraged participation in the regulatory proceedings. An administrative law judge ruled on October 23 that Union Pacific must provide the video without the "Confidential" label by October 30.
Union Pacific appealed on October 30, requesting a temporary stay, arguing that public release could cause "irreparable harm" by enabling others to manipulate or distribute the recording outside the merger proceeding. The railroad also claimed parties to the case already had access to the video and could use it in regulatory filings under existing confidentiality restrictions.
Union Pacific proposed posting the video on its merger website with the confidentiality designation intact, allowing public viewing without granting unrestricted reproduction and distribution rights. Canadian Pacific Kansas City challenged Union Pacific's delay in disclosing the recording, arguing it had missed the appeal deadline and requesting immediate compliance.
Union Pacific disputed this interpretation, claiming its appeal fell within the seven-day window allowed by board rules. The STB's decision is crucial as it determines whether to approve the Union Pacific–Norfolk Southern merger, and the allegations surrounding Vena's remarks have raised questions about whether customers can freely express their views during the regulatory review.
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