ABH’s Hatch on Potential Rail Consolidation
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ABH’s Hatch on Potential Rail Consolidation
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Union Pacific’s $88 billion bid for Norfolk Southern could usher in a new era for the North American railroad industry if the companies can show the Surface Transportation Board that the deal will enhance competition and is in the public interest. In this Talking Transports podcast, Tony Hatch, founder and president of ABH Consulting, joins Lee Klaskow, Bloomberg Intelligence senior transportation and logistics analyst, to share his insights about the merits and challenges of a possible merger between the two large railroads. UP and NS will need to make their case to all stakeholders, which include shippers, workers, Norfolk shareholders and regulators, who could be the most difficult to persuade. The downstream effect of a deal or perceived likelihood of regulatory approval could lead to further consolidation among Class I carriers.
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