Federal Policy on Railroad Mergers Due for Review

The Surface Transportation Board hopes this week to begin the process of developing new rules for how it handles proposed rail mergers.

	Related Stories
	BNSF Joins CN in Appealing STB Rail Merger Moratorium (Mar. 27) STB Imposes Rail Merger Moratorium (Mar. 17) UPS Asks 2-Year Ban on New Rail Mergers (Mar. 13)  (Note: To return to this story, click the "Back" button on your browser.)

Linda J. Morgan, who heads the agency, said the board plans to issue an advance notice of proposed rulemaking on its merger policy by April 6. The move comes nearly four months after the announced $6 billion deal to merge Burlington Northern and Santa Fe Railway and Canadian National Railroad into a 50,000-mile freight-hauling network.

On Dec. 20, the two companies outlined plans to combine their resources to create the first transcontinental rail operation, the National Railway Corp. ("BNSF, CN Plan Merger," 12-27,

. 1). However, the deal has met with much opposition from competitors, shippers and government officials who believe businesses are not prepare to go through another series of problems like those that followed the 1999 breakup of Conrail and 1996 service meltdown involving Union Pacific.

The STB held four days of testimony in March on potential effects that the BNSF-CN merger would have on the nation’s rail system. After the hearings, the agency imposed a 15-month moratorium on such deals while it re-examined current policies.

For the full story, see the Apr. 3 print edition of Transport Topics. Subscribe today.