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Railroad merger may aid Altoona

If Norfolk Southern Railroad’s proposed merger with the much larger Union Pacific Railroad comes to pass, the combining of the two carriers might be bad for Altoona’s Juniata Locomotive Shop, but it actually might be good instead.

Look at the possible merger from two perspectives, first the negative one that seems to be dominant at this point.

The negative perspective envisions at least a cutback in employment, if not total closure of the local operation.

Union Pacific no doubt would control major decisions, if regulatory approvals are forthcoming, because it is the much bigger of the two merger entities.

Union Pacific is the largest of this country’s six major freight railroads; Norfolk Southern is the smallest.

But consider: Currently, Union Pacific’s locomotive repair shops are located in Arkansas, Nebraska, California, Oregon and Texas — far from what would be the easternmost sector of the combined railroad.

If the proposed merger materializes, could Altoona’s Juniata operation be the logical complement to what Union Pacific currently has in place, from a locomotive-repair standpoint, because of where it is located?

As announced, the proposed merger, which is in an advanced negotiations stage, would create a single railroad with its service stretching from the East Coast to the West Coast. It is a reasonable assumption that having a locomotive repair operation in the East would be a valuable asset in terms of helping to produce more reliable service.

Reliable service and profit are what doing business is all about.

However, that assumption wouldn’t preclude Union Pacific — or whatever the name of the combined company would be — from gambling by maintaining only its current repair shops.

But beware of verbal pledges to Altoona that nothing would change here as a result of the merger. Such pledges are valid only until changes start to happen, as many businesses that have been bought out in the ever-changing business world found out over the long- or not-so-long term.

It must be remembered that Union Pacific has no obligations to Altoona or anywhere else not currently part of its system. Nevertheless, it is impossible to predict what negotiating agreements have been put in place — if only unofficially at this point — in the talks that have been in progress up to now.

The U.S. Surface Transportation Board holds the approval or rejection power that hangs over the ongoing discussions, which now are believed to be farther along than expert observers of the rail industry perhaps had thought.

As reported in an Associated Press article in the July 25 Mirror, to be approved, any major rail merger must show it will enhance competition and serve the public interest under rules established in 2001, in the wake of a pair of mergers.

The Surface Transportation Board thus has established a high bar for consolidation in what definitely is a crucial industry for this country.

If the merger ultimately works to Altoona’s best interests — and there is reason to believe that that possibility exists — Altoona could be a key component of what evolves from the merger.

The best advice is not to give up hope. This city’s railroad history and dedication to the industry cannot be ignored by the individuals involved directly in the talks.

It is to be hoped that those negotiators will commit themselves to familiarize themselves with what the Altoona shop has to offer, including and especially the dedication of its skilled employees.

Allowing the Altoona workers to prove themselves is always the right choice.

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