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UIS prof has her eye on mega merger

Photo: Shutterstock


Springfield, IL (CAPITOL CITY NOW) – A proposed merger of two giant railroads – Norfolk Southern and Union Pacific – could make a bad problem worse, according to economics professor Patty Byrnes of University of Illinois Springfield.

“Chicago handles roughly 25 percent of the U.S. freight rail,” said Byrnes, “and it’s also well known that Chicago is a choke point, they call it, for transcontinental rail service. And there’s an old saying that a train takes two days to travel (to Chicago) from the west coast, and then it takes another two days to get through Chicago.”

It’s not a done deal; it requires federal approval.

In a follow-up email, Byrnes wrote:

“I also want to highlight the potential economic implications of the proposed merger. For freight-dependent regions like Illinois, which is home to major agricultural producers and Midwestern manufacturing hubs, the merger could reshape competitive dynamics. If the combined railroad delivers better service and lower shipping costs, the benefits could be significant. But if competition diminishes and freight rates rise, both Chicago and rural communities could face higher input costs and reduced service reliability. The ripple effects on farms and manufacturers paying higher transportation costs would further harm the economies of Chicago, its suburbs, and rural communities across Illinois.”

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