United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2001-07-05 monographic deposited born digital 58 p. GA 1.13:GAO-01-689 https://www.govinfo.gov/app/details/GAOREPORTS-GAO-01-689 P0b002ee180387097 f:d01689 DGPO 2010-08-12 2011-03-24 GAOREPORTS-GAO-01-689 machine generated eng fdlp REPORT GAOREPORTS-GAO-01-689 GAO-01-689 Competition Corporate mergers Freight transportation operations Freight transportation rates Railroad industry Railroad transportation operations Reporting requirements Colorado Louisiana Reno (NV) Salt Lake City (UT) Texas Other Written Product A01072 Railroads have been a primary mode of freight transportation for many years, especially for bulk commodities such as coal and grain. During the last 25 years, the freight railroad industry has undergone substantial consolidation largely to reduce costs and increase efficiency and competitiveness. This consolidation has raised concern from some companies that ship and receive their goods by rail and others that mergers have led to a reduction in railroad competition and consequently higher rail rates or poorer service. This report reviews (1) the role the Surface Transportation Board plays in reviewing proposed railroad mergers and overseeing mergers that have been approved and how post-merger oversight is conducted, (2) how the Board mitigates potential harm to competition, and (3) how the Union Pacific/Southern Pacific merger affected rail rates in selected geographic areas. GAO found that the Board reviews railroad merger proposals and approves those that are consistent with the public interest, ensures that any potential merger-related harm to competition is mitigated to preserve competition, and oversees mergers that have been approved. The Board imposes conditions on mergers to mitigate potential harm to competition. The Board also focuses on the overall direction and magnitude of rate changes when analyzing rail rates as part of merger oversight. It does not isolate the effects of mergers on rates from other effects. When GAO used this approach to analyze how the Union Pacific/Southern Pacific merger affected rail rates, it found that the merger reduced rates in four of six commodities studied. However, for two of the commodities, the merger put upward pressure on rates, even though other factors caused overall rates to decrease. By focusing on overall rate decreases, the Board will be unable to determine whether the decrease is due to the merger or other factors. https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-01-689/html/GAOREPORTS-GAO-01-689.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-01-689/pdf/GAOREPORTS-GAO-01-689.pdf GAO-01-689 https://www.govinfo.gov/app/details/GAOREPORTS-GAO-01-689 Other Written Product GAO-01-689; Freight Railroad Regulation: Surface Transportation Board's Oversight Could Benefit From Evidence Better Identifying How Mergers Affect Rates; Competition Corporate mergers Freight transportation operations Freight transportation rates Railroad industry Railroad transportation operations Reporting requirements Colorado Louisiana Reno (NV) Salt Lake City (UT) Texas