LONG BEACH, Calif. — The latest round of rail mergers has the Department of Transportation weighing a stronger “public-private partnership” with freight railroads, according to one official at the Federal Railroad Administration.
DOT officials think the proposed merger of the Burlington Northern Santa Fe and Canadian National railroads will spur another wave of consolidations and lead to the creation of a second transcontinental line. The resulting duopoly may be ill-prepared to handle the demands of a robust economy, said Charles R. White Jr., associate administrator for policy and program development at the FRA.
White, along with BNSF executives, was on hand to offer his views on the future of intermodal transportation at a Transportation Research Board conference, Feb. 23 to 25. His comments drew attention because they came as DOT officials prepared to testify before the Surface Transportation Board on the potential effects of the BNSF-CN deal on the nation’s rail service.
In December, the two companies announced their $6 billion deal to create the largest rail operation in North American. North American Railways, as the new business would be called, is expected to generate $12.5 billion in annual revenue and have 67,000 employees. Its 50,000 miles of track would be about two-thirds the size of the 78,200 miles operated by CSX, Norfolk Southern and Union Pacific.
For the full story, see the Mar. 6 print edition of Transport Topics. Subscribe today.
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