The American Fuel & Petrochemical Manufacturers has called on the Surface Transportation Board to reject the latest railroad merger application before the regulator, arguing that the proposed combination would harm competition.

AFPM, which represents US fuel and petrochemical manufacturers, filed its objection with the STB, the federal body that reviews railroad consolidations and enforces competitive conditions on the US freight network. The organisation says the merger as presented fails to address the competitive risks that consolidation would create for shippers who depend on rail service to move feedstocks and finished products.

The intervention places AFPM among the shipper interests pushing back against further concentration in the US Class I railroad sector. Petrochemical producers and refiners are heavy users of rail freight, moving crude, chemicals, ethanol and refined products across networks where the number of major operators has already fallen from dozens to seven over the past four decades of consolidation.

For AFPM members, the stakes are commercial. Reduced competition among Class I carriers can mean higher rates, weaker service and fewer routing options for captive shippers — facilities served by only one railroad. The STB has long treated the protection of such shippers as a central test in merger review, and objections from organised shipper groups typically form part of the evidentiary record the board weighs when deciding whether to approve, reject or condition a transaction.

AFPM's filing argues that the application in its current form does not satisfy that test. The trade body says the STB should deny approval rather than accept commitments offered by the applicants, contending that the remedies proposed do not adequately preserve competitive rail options for affected traffic.

The STB will now consider AFPM's submission alongside the merger application and other public comments as the review proceeds. The board retains authority to impose conditions on any approved merger, including trackage rights, gateways and rate protections, if it finds the public-interest standard is met only with safeguards attached.

A final decision rests with the STB, and the outcome will shape the competitive structure of the US freight rail market for chemical and fuel shippers in the years ahead.