PRINTER'S NO. 1504
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE RESOLUTION
No.
262
Session of
2015
INTRODUCED BY RAFFERTY, YAW, ALLOWAY, GREENLEAF, VULAKOVICH,
SCHWANK, WOZNIAK AND BARTOLOTTA, JANUARY 19, 2016
REFERRED TO TRANSPORTATION, JANUARY 19, 2016
A RESOLUTION
Urging the United States Surface Transportation Board, the
United States Department of Justice, the United States
Department of Transportation and the Congress of the United
States to reject any plans submitted by Canadian Pacific
Railway to acquire Norfolk Southern Corporation and to
consider the potential negative impact of the proposal with
respect to building a more efficient freight network in this
Commonwealth.
WHEREAS, Norfolk Southern employs more than 5,200
Pennsylvania residents, operates more than 2,300 route miles of
track and 22 rail yards and intermodal terminals throughout this
Commonwealth, has operating division headquarters in Pittsburgh
and Harrisburg, maintains its primary locomotive repair shop in
Altoona and connects with 48 Class 2 and Class 3 railroads in
this State; and
WHEREAS, In 2014, Norfolk Southern Corporation invested
$151,000,000 in its tracks and facilities in this Commonwealth,
purchased more than $1,000,000,000 in goods and services from
Pennsylvania vendors, was responsible for $34,400,000 in State
and local taxes and originated or terminated more than 1,700,000
freight shipments in this State; and
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WHEREAS, This Commonwealth has more freight railroads than
any other state in the United States and has worked successfully
with Norfolk Southern Corporation on a series of significant
public-private partnerships to further strengthen the
Commonwealth's freight rail network; and
WHEREAS, On November 9, 2015, Canadian Pacific Railway
submitted an unsolicited proposal to acquire Norfolk Southern
Corporation and has subsequently made public statements that if
it acquires Norfolk Southern Corporation it is targeting
$1,800,000,000 in "synergies" that would be achieved through
locomotive and rolling stock fleet reductions, the
rationalization of rail yards and other facilities, a lower tax
rate, potentially resulting in significant employment
reductions, decreased investment in transportation
infrastructure and poor freight rail service to shippers doing
business in Pennsylvania; and
WHEREAS, The chief executive officer of Canadian Pacific
Railway expressed his intent to immediately assume control of
Norfolk Southern Corporation by taking over as chief executive
officer of Norfolk Southern Corporation during the United States
Surface Transportation Board's review of the transaction through
a "voting trust"; and
WHEREAS, Congress has given the United States Surface
Transportation Board the power to keep the best interest of
consumers in mind when considering proposed mergers, especially
an acquisition of this scale; and
WHEREAS, Any attempt to circumvent the role of the United
States Surface Transportation Board and threaten the sovereignty
of a competing railroad should be taken seriously; and
WHEREAS, The public interest of Pennsylvania is not served by
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indiscriminate actions that would result in poor freight rail
service to shippers doing business in Pennsylvania; and
WHEREAS, The men and women of Pennsylvania who serve in the
United States Armed Forces benefit from American-owned
infrastructure used to transport military equipment and that
infrastructure should not be jeopardized by the sale to a
foreign company; and
WHEREAS, Any potential shift in traffic as a result of a
transaction proposed by Canadian Pacific Railway should be
carefully reviewed to protect the residents of Pennsylvania from
shifts in the transportation of hazardous materials, including
crude oil; and
WHEREAS, The Congress of the United States should review the
rail industry's current antitrust exemption which prevents the
United States Department of Justice from stopping the merger
even if a review produces evidence of restricted competition;
therefore be it
RESOLVED, That the Senate of Pennsylvania urge the Congress
of the United States to exercise due diligence on behalf of the
citizens of this Commonwealth and of this nation by exercising
regulatory control and oversight in order to maintain fair
competition, adequate connections with short line railroads and
efficient, low-cost service for rail shippers; and be it further
RESOLVED, That copies of this resolution be transmitted to
the members of the United States Surface Transportation Board,
the United States Secretary of Transportation, the United States
Attorney General, the Speaker of the United States House of
Representatives, the President Pro Tempore of the United States
Senate and to each member of Congress from Pennsylvania.
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