DOJ Weighs in on Reciprocal Switching

The U.S. Department of Justice (DOJ) has submitted comments to the Surface Transportation Board (STB) on reciprocal switching, in advance of STB’s March 15-16 hearing on the subject that has divided freight railroads and many of their major customers.

Amtrak-CN Case Moves Forward at STB

The Surface Transportation Board (STB) has issued a procedural schedule for Amtrak and CN to submit further evidence and arguments in their dispute over establishing reasonable terms and compensation for Amtrak to use the Class I railroad’s facilities and services.

Surface Transportation Board Chairman Martin J. Oberman on March 3 announced that he has selected Danielle Gosselin to lead the Office of Environmental Analysis.

STB: Gosselin Assumes OEA Director Role

Danielle Gosselin has been appointed Director of the Surface Transportation Board’s Office of Environmental Analysis (OEA), following service in an acting capacity since January 2021.

BNSF to STB: Ensure Cross-Border Competition

BNSF is asking the Surface Transportation Board (STB) to impose conditions that preserve competition, particularly at the U.S.-Mexico border, if the proposed Canadian Pacific-Kansas City Southern merger is approved.

CPKC: UP Seeks Conditions at Laredo Gateway

A Canadian Pacific-Kansas City Southern combination without conditions “would likely cause a significant loss of competition, especially for traffic moving via the Laredo Gateway,” Union Pacific (UP) told the Surface Transportation Board (STB) in comments filed Feb. 28.

Commentary

Does the AAR Fear Competition?

How remarkable that the customarily staid Association of American Railroads (AAR) is following a Marx Brothers comedy script to derail a Surface Transportation Board (STB) proposed rulemaking intended to assure railroad competition. One scene violates first-year law school advice not to irritate judges hearing your case; another vandalizes economic science by comparing a highly competitive soft drink market with rail service monopolies.

CN Pushing for KCS Line Divestiture

CN has officially asked the Surface Transportation Board (STB) “to condition any approval of a Canadian Pacific-Kansas City Southern merger on the divestiture of the KCS line from Kansas City, Missouri to Springfield and East St. Louis, Illinois (the Kansas City Speedway) to CN, pursuant to the STB’s statutory authority to order ‘the divestiture of parallel tracks’ as a merger condition.”

STB Clarifies Decision in Sanimax V. Union Pacific

The Surface Transportation Board (STB) on Feb. 24 clarified its previous decision regarding Sanimax USA LLC’s common carrier obligation and unreasonable practices complaint against Union Pacific (UP).

Commentary

Point/Counterpoint: STB Annual Rail Rate Index Study

Editor’s Note: The following is the conclusion to a respectful exchange of ideas between former Surface Transportation Board Director and Chief Economist Dr. William Huneke and Jay Roman, President of Escalation Consultants, Inc. about the

Figure 1 shows the real, inflation-adjusted Rail Rate Index over time. (Courtesy: STB Annual Rail Rate Index Study: 1985-2020)

STB Issues Annual Rail Rate Index Study: 1985-2020

The Surface Transportation Board’s Office of Economics (OE) has published the Annual Rail Rate Index Study: 1985-2020, summarizing trends in freight railroad rates.

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