WASHINGTON — Norfolk Southern has asked federal regulators to suspend review of the Canadian Pacific Kansas City and CSX Transportation proposal to create a new through route linking the Southeast and Mexico via Myrtlewood, Ala.
Earlier this month CPKC and CSX filed separate applications seeking Surface Transportation Board approval to acquire and operate Genesee & Wyoming short line Meridian & Bigbee.
Meridian & Bigbee’s 168-mile route is the missing link between the CPKC system at Meridian, Miss., and the CSX network at Burkeville, Ala., just west of Montgomery, Ala. The Meridian & Bigbee, or MNBR, owns the 50.4-mile route west of Myrtlewood and leases from CSX the 107 miles between Myrtlewood and Burkville. MNBR operates the 10 miles between Burkeville and Montgomery via overhead trackage rights on CSX.
CPKC subsidiary Kansas City Southern will acquire the 50.4-mile segment of the MNBR between Meridian and Myrtlewood, which it’s calling the Western Line. MNBR will continue to provide local service on the route after the transaction.
In a separate transaction, CSX will resume operations on its line between Myrtlewood and Burkville, Ala. — dubbed the Eastern Line — which has been leased to MNBR since 2003. As part of that transaction, MNBR will cease operations on the Eastern Line.
CPKC and CSX said the transactions will enable them to make the investments necessary to create a Class I railroad freight corridor that will expand shipping options for intermodal, automotive, and forest products moving between the Southeast and Texas and Mexico.
Between the KCS hub at Shreveport, La., and Meridian the CPKC-CSX interline service would rely on the Meridian Speedway, the KCS-NS joint venture that dates to 2006, and would compete head-to-head with existing NS-CPKC interline moves in the corridor.
NS, in a filing with the STB yesterday, said the CPKC and CSX applications should be considered as what they truly are: A single deal with potentially wide-ranging impacts.
“The Board should order consolidation of these proceedings and a resubmittal of an application that covers what is patently a unified Transaction,” NS said. “The Board’s order for consolidation should set the current proceedings in abeyance until such time as a revised, unified, application is submitted by the Applicants. Finally, the Board should clarify that the revised, unified, application to be submitted by the Applicants includes regulatorily-required data and analysis that covers the entirety of the impacted rail network, specifically including the Meridian Speedway and the Meridian gateway.”
NS said that the separate applications don’t consider the potential impact new CSX-CPKC interline trains would have on current Meridian Speedway operations, the Meridian gateway, Amtrak’s Crescent service, or proposed new Amtrak service. NS currently runs about 17 trains per day through Meridian.
“There is no discussion … whether the additional premium run-through train anticipated by CPKC to move off the Meridian Speedway and onto the Western Line would fit into the constrained sidings of the Meridian gateway and be in compliance with the same type of length limitation that it recently imposed on operations over the Meridian Speedway,” NS said.
CPKC now limits Meridian Speedway trains to 8,500 feet. The move affects just one train: The daily eastbound domestic intermodal train that CPKC receives from Union Pacific at Shreveport and delivers to NS at Meridian. The train was typically 11,000 feet long before CPKC mandated that trains fit into the Meridian Speedway’s passing sidings.
The single-track, 302-mile Speedway route between Shreveport and the connection with NS at Meridian has 21 passing sidings, most of which are around 8,500 feet long. Only three of the Speedway’s passing sidings can handle an 11,000-foot train.
“CPKC claims that ‘No commuter or passenger service moves on the Western Line’ … but does not address the fact that the through train service accesses the Meridian-Myrtlewood route through the Meridian gateway and that Amtrak operates through that very gateway, together with CPKC and Norfolk Southern,” NS said. “Further, CPKC omits the fact that, as a condition of STB approval for the acquisition of Kansas City Southern, the Board ordered CPKC to ‘honor CP’s commitments made under the settlement agreement with Amtrak, including CP’s agreement to support certain planned expansions of Amtrak passenger service.’ One portion of that settlement sets a goal of ‘introducing Amtrak service between Dallas, Texas and Meridian, Mississippi….’ The new operations anticipated by the current CPKC/CSXT/G&W transaction implicate the feasibility of that new Amtrak service, operations over the Meridian Speedway, and the fluidity of traffic through all portions of the Meridian gateway (including that of Norfolk Southern). However, the Applicants’ current bifurcated Western Line and Eastern Line approach does not address any such operational impacts.”
Why would they need an enviromental impact statement to lay a second track alongside the first? Oh, I know – so consultants, greenies and other non-productive nimbys can get their snout in the trough and maybe make a little money. Regarding the whining from NS, American railroads have been whining about competition since lawyers got involved, roughly since 1829.
The NS units on the CP in Milwaukee are run-thru trains probably an extra 283 or 281. I have rune a few trains out of Chicago like that, headed to St. Paul. Also the CP runs NS power on its lines as a horsepower sharing program.
It appears to me that it’s hard to see real business competition in the railroad industry when the tracks are owned by the individual companies… I know that a railroad gives other railroads access to its tracks. I live in Milwaukee, WI and I see NS trains and NS-lead locomotives on the CPKC tracks near my home.
What I really would wish for is for more use of rail and less trucks on our highways. I drive 9 hours a day as part of my job and the amount of trucks on the roads everyday is just way too much. They like to talk about long trains, but trucks are a problem on highways. I’d like to see these railroads take a bite out of the long haul trucking industry and stop this fighting!
The NS units on the CP in Milwaukee are run-thru trains probably an extra 283 or 281. I have rune a few trains out of Chicago like that, headed to St. Paul. Also the CP runs NS power on its lines as a horsepower sharing program.
Sounds to me that NS may have a law suit in mind since its current partner is trying to undercut it. After all they did contribute a lot of money to the speedway which benefited KCS as well as NS.
Stay tuned.
As I said when this first came down, NS shot themselves in the foot. When CSX was asking for a piece of the pie over the Meridian Speedway during the CP/KCS merger application, I had an idea that they would find a way to get access. Only way was by the M & B. NS should have purchased, or made an agreement, with that shortline that would freeze out CSX.
J.R. in an above statement said the NS should double track the line to Shreveport. One to be used by CPKC/CSX and other by NS. It can’t be done that easily. NS only owns 30%, CPKC owns 70%. They would have to make agreements. That would have to be reviewed by the Government. After that approval they would have to do environmental impact statements that also need to be approved. Then NS would probably have to come up with $1 to $2 billion double track the line. More if the bridge across the Mississippi at Vicksburg needs replacing (pretty sure it does because of speed restrictions).
Getting real sick and tired of other railroads whining. Do something yourself to become competitive rather than complain.
Lots of talk about whining and fear of competition. Do we have anyone here knowledgeable enough to comment on whether NS has a valid legal or regulatory point with their complaints?
There is nothing stopping NS from making those sidings into a 2nd set of rails over the route. NS traffic uses one. CSX uses the other. Everyone can keep their toys and play in their own sandbox.
Everyone is all about sharing when it gives them the upper hand but they sure make a lot of noise when they find out it doesn’t work the way they want anymore.
In other words, we at NS do not like competition. (Kind of like UP)
With the Meridian Route tying together two important regions that don’t have enuff rail lines, maybe it should be improved for more traffic.
All the railroads are like 3rd grades. ” It’s not fair” “feel bad for more” In the real world when you get more competition you figure how to beat it, not cry about it. If you offer a superior service you won’t lose customers. If you don’t or are not confident in your offerings you will, rightfully so, lose business.
x100
How about instead of whining you up your game?
As usual, NS needs to shut their mouths.
All comments above spoken like true CPkc Loyalist who don’t give a crap about the needs of their “playmates” from other railroads… that is unless they do something that CPkc doesn’t like then it is “Katie bar the door…”
You speak of “superior service.” Well maybe they should prove they have superior service before they go stepping on everyone else’s toes and trying to rewrite North American rail relationships, especially in the United States. So far the only thing I have seen is superior boasting without much fact. In fact if Bill Stephens would stop promoting CPkc like they are the only railroad in North America, all the while taking pot shots at every other railroad, then the truth would “will out!”
Wow. Did anyone else know that Big Stephens had that much power?
Sorry. Bill.