UPS Oposes CP-NS Merger

By Aiswarya Lakshmi
Saturday, February 13, 2016
Photo: UPS

 UPS, one of North America’s largest intermodal shippers, has told federal regulators that it is against Canadian Pacific Railway's (CP's) proposed acquisition of Norfolk Southern Corp. (NS).

 
UPS' thumbs-down has dealt a severe blow to CP's $28 billion bid to acquire U.S. eastern railroad NS. UPS Inc. is the largest transport company in the U.S. and one of the nation's biggest users of intermodal services.
 
UPS has asked the Surface Transportation Board (STB) to reject the proposal on grounds that it will lead to diminished service levels and higher costs. UPS also warned that the acquisition would result in a spree of rail-industry consolidation that would impair intermodal service reliability even more.
 
UPS - which says it moves 3,000 trailers and containers on the rail network every business day - has become the latest shipper to oppose the CP-NS merger.
 
UPS' concerns, raised in a letter to the Board, are no different from those already voiced by competing railroads, shipper groups, and members of Congress. However, UPS' size, influence in the marketplace and within official Washington, and reputation as arguably the industry's premier operator could carry enormous weight with regulators.
 
 Despite UPS' opposition, CP still plans to pursue the merger, according to Martin Cej, a spokesman for the Calgary, Alberta-based railroad. On Tuesday, CP disclosed that it would introduce a nonbinding resolution later this year at NS' annual meeting that would call for NS' board to discuss the deal with CP.
 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

Netherlands Opts for ‘Flexible’ Container Weighing

As of July 1, shippers and freight forwarders are required to verify the weight of a container before the container is loaded onto a ship.   The Netherlands’

Enclosed Space Safety Rule Enters into Force

A new regulation aimed at protecting seafarers who need to enter enclosed spaces, by requiring ships to carry portable atmosphere testing equipment on board, enters into force on July 1, 2016.

Beijing Slams South China Sea Court Proceedings

Permanent Court of Arbitration ruling set for July 12. An international court said it would deliver a hotly anticipated ruling in the Philippines' case against

Intermodal

Netherlands Opts for ‘Flexible’ Container Weighing

As of July 1, shippers and freight forwarders are required to verify the weight of a container before the container is loaded onto a ship.   The Netherlands’

Matson Launches US West Coast - South Pacific Service

Matson’s new South Pacific Express will link Pacific networks via Honolulu    U.S. carrier in the Pacific Matson, Inc. has introduced a new containership service between the U.

Skou Replaces Andersen as Maersk CEO

Danish shipping and oil company A. P. Moller-Maersk has appointed Soren Skou, head of its container shipping unit Maersk Line, as new chief executive for the group

Mergers & Acquisitions

PALFINGER Finalizes Harding Acquisition

The PALFINGER Group closed the acquisition of 100 percent of the shares in Herkules Harding Holding AS, i.e. the globally operating Harding Group, supplier of lifesaving

NAT Takes Delivery of Suezmax, Earnings Capacity Up

Nordic American Tankers Limited ("NAT" or "the Company") announced that it today took delivery of a Suezmax vessel, the Nordic Sirius, built at a shipyard in Japan.

UASC and Hapag-Lloyd Merger in the Last Leap

A merger between United Arab Shipping Company (UASC)  and German container shipping line Hapag-Lloyd will create a shipping group that is the 5th largest in the

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Ship Repair Ship Simulators Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0589 sec (17 req/sec)