Journal of Transportation Management


In the Summer of ‘96, Union Pacific Railroad merged with Southern Pacific to create the largest American railroad. Controversy continues to surround the merger. This paper reports results of a recent merger-impact survey. Survey respondents were rail and intermodal shippers. Among the interesting research findings are the following: (1) while shippers report a negative impact due to less rail competition, trackage rights granted to Burlington Northern/Santa Fe have failed to dampen this impact; (2) railroad service has deteriorated, but freight rates have remained stable; and (3) service problems are more severe for rail, as opposed to TOFC/COFC, shippers.