New Railroad Merger Rules to Be Issued
Federal regulators today are expected to issue new rules governing railroad mergers that industry experts say will make it more difficult for North America’s remaining major rail carriers to merge, but will likely prompt more marketing alliances.
The Surface Transportation Board rules are expected to follow closely a draft proposal that would hold future mergers to better guarantees of uninterrupted service and new requirements to enhance competition.
The STB imposed a 15-month merger moratorium last year to give it time to draw up the new guidelines after being confronted with a major merger proposal by Canadian National Railroad Co. and Burlington Northern Santa Fe Corp. that followed delay-plagued combinations on other lines.
The 1996 merger of Union Pacific Corp. and Southern Pacific Rail Corp., and the purchase and division of Conrail Inc. by Norfolk Southern Corp. and CSX Corp. over 1998-99 led to serious bottlenecks and widespread delays.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
