CCC PPPPP U U CCC N N EEEEE W W W SSS C C P p U U C C NN N E W W W S S C P P U U C N N N E W W W S C PPPPP U U C N N N EEE W W W W SSS C P U U C N N N E WW WW S C C P U U C C N NN E W W S S COC P UUUU CCC N N EEEEE W W SSS California Public Utilities Commission 505 Van Ness Avenue, Room 5301 San Francisco, CA 94102 CONTACT: Armando Rendon March 28, 1996 CPUC-028 415-703-1366 Kenneth Koss 213-897-2997 CPUC BACKS UNION PACIFIC, SOUTHERN PACIFIC MERGER The California Public Utilities Commission (CPUC) today announced its support of the proposed merger of the Union Pacific and Southern Pacific railroads. The CPUC's formal comments will be filed with the federal Surface Transportation Board (STB) tomorrow. While supporting the merger, the Commission noted that the consolidation of these two railroads would represent a major realignment of rail transportation in California that could result in improved service and have a positive economic impact on the state, but expressed its concern about the possible impact on competition and service on certain railroad routes or corridors. The areas of most concern are the central corridor which carries freight shipments between the Midwest and the San Francisco Bay Area; the I-5 corridor which parallels Interstate 5 from Los Angeles to Seattle, and the southern corridor which covers routes from Los Angeles through the Southwest. At present, three major freight railroads serve the state, the Union Pacific, the Southern Pacific, and the Burlington Northern/Santa Fe. The STB will make the final decision on the merger this summer. Other parties will also be commenting on the merger and the CPUC will respond to those statements at a later date. ###