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Coping with consolidation; alliances flourish.(consolidation in the chemical transportation industry)(Coping with Consolidation)

Chemical Week, September, 1996 by Morris, Gregory DL

The acquisition of Southern Pacific Rail by Union Pacific Corp along with the merger of Royal Pakhoed NV and Univar Europe characterize the extent and scale of consolidation within the chemical transportation industry. There is no chemical service sector outside of third-party logistics that has not undergone consolidation. Freight rates have not changed much as a result of consolidation. However, safety within the industry remains a concern.

Just two weeks ago the acquisition of Southern Pacific Rail (SP) by Union Pacific (UP; Omaha) became a legal reality, despite vociferous opposition from many elements in the U.S. chemical industry. A few days later, and several thousand miles away, Royal Pakhoed (Rotterdam) held its first board meeting that included executives of the...

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