PSR made Class I railroads the darlings of Wall Street. But to many rail shippers, PSR’s operating efficiencies came at a cost. The resiliency and service levels that allows for rail volume growth and recovery from emergency events was rationalized out of the system. Now, with the UP-NS merger, the PSR playbook can be applied to a larger unified network. If you’re a shipper burned by some aspects of PSR, you might be skeptical if this benefits you.

Does the merger herald a new era of PSR?
What questions should shippers be asking in relation to how their freight is handled on the consolidated network?

Find out by reading PLG’s strategic analysis of the merger and PSR.

If the STB approves the UP-NS merger, the question shippers should be asking is not whether the deal creates efficiencies. It is whether they are protected by promises or by alternatives.

The distinction matters because a gateway can stay open while becoming less useful. A commitment can stay technically intact while losing its value. This paper explains why options create leverage before a dispute ever starts, and what shippers should be doing now, while the market structure is still in play.