A&R Transportation Team Leader Interviewed on Union Pacific-Norfolk Southern Deal

Adams & Reese Global Trade & Transportation Team Leader Chris Kane was interviewed by Law360 in “What to Watch in Mega Union Pacific-Norfolk Southern Tie-Up.” The legal news publication interviewed attorneys within the transportation industry to discuss Union Pacific and Norfolk Southern’s plan to create the first transcontinental railroad owned by a single firm.

The possible deal includes Union Pacific Corp., a West Coast freight rail behemoth, acquiring Norfolk Southern Corp. and its expansive East Coast network. Law360 says the merger would transform freight transportation in the U.S., but it must first clear a heightened standard with the Surface Transportation Board (STB) for reviewing mega rail mergers that hasn’t yet been tested since the standard was set 24 years ago. The plan would also link a total 50,000 route miles across 43 states from coast to coast.

“Because of the networks that we’re dealing with and the strength of those networks … it should be more efficient, on paper, right?” says Kane, a Partner in the Adams & Reese New Orleans office. “Everything still has to be done in the real world, but, on paper, you would think that would weigh in their favor.”

Kane said the projected deal between the two companies also carries the potential of bypassing choke points and reducing interchanges at major rail hubs like Chicago and New Orleans.

“On this deal, you’d really have an impact across major transportation hubs like Chicago, New Orleans, the Midwest – which are significant rail hubs – and how cargo is moved,” says Kane. “How you could stack rail cars on rail lines and not have however many switching moves  it’s just a different logistical model really.”

Kane added: “The natural concern is the impact of any sort of anti-competitive creep that could come into the market model. “Meaning, will customers get less service because now you’ve got two competitors really turning into one operator, and will that impact the cost structure, the service structure?”

At Adams & Reese, Kane is the Global Trade, Transportation & Logistics Team Leader; a leading member of the Crisis Preparedness & Disaster Response Team; and a member of the Intersection of Business & Government Practice Group. For 20 years, Kane has counseled clients on economic development projects, transportation law, construction law, regulatory and government relations, disaster recovery, and highly specific litigation matters.

With extensive port and logistics experience, Kane counsels clients on transportation issues at the intersection of business and government, and his litigation practice stems from his experience with transportation, construction, and commercial matters. He works with regional and national trucking and logistics companies to conduct federal regulatory work and assists with public transit issues. In the litigation world, he has successfully defended and prosecuted claims ranging from fatal motor carrier accidents to multimillion-dollar cargo damage disputes.

Kane is the former board chair of Greater New Orleans, Inc, and in his role, he helped the economic development arm ready and improve the infrastructure for the city to host Super Bowl LIX in 2025. Kane has been instrumental in helping businesses recover from both the pandemic in 2020 and from Hurricane Katrina in 2005. Following Katrina, Kane co-founded Desire NOLA, a nonprofit to assist small business recovery.