US: Looming railroad merger raises alarms for Sen. Klobuchar

Senator Amy Klobuchar (D-MN) is reportedly seeking a federal review of a rumored merger between two major railways she fears will cause more problems in the troubled Upper Midwest.

According to reports, Klobuchar has asked federal officials to investigate the deal between CSX and Canadian Pacific over concerns their merger would reduce competition and increase shipping costs for farmers and other shippers in the region of the US. The merger could exacerbate already an already problematic market, she said.

”Given recent concerns about shipping delays and ongoing concerns about anticompetitive conduct in the railroad industry, any further consolidation would prompt significant concern,” the Senator wrote in a letter to the US Attorney General and the head of the US Surface Transportation Board.

Railroads are currently exempt from federal antitrust law, but Klobuchar has introduced new rules that would end that exemption.

Full content: Star Tribune

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