STB MERGER MORATORIUM WINS BACKING FROM SENATORS
Key members of the U.S. senate have thrown their support behind the Surface Transportation Board’s decision to declare a 15-month moratorium on major rail mergers.
Support for the board’s ruling surfaced at a special hearing called by Sen. Kay Bailey Hutchison, R-Texas, chairman of the Senate’s Transportation and Merchant Marine Subcommittee. The moratorium also drew support from Senate Majority Leader Trent Lott of Mississippi; Sen. Jay Rockefeller, D-W. Va.; Sen. John F. Kerry, D-Mass.; and Sen. Byron L. Dorgan, D-N.D.
Answering claims by Canadian National and Burlington Northern Santa Fe, STB chairman Linda Morgan — the sole witness at the first of what is expected to be a string of oversight hearings on the rail industry — said she is confident her agency did not exceed its statutory authority by declaring the moratorium.
“The decision is clear. It speaks for itself. And I am proud of this decision,” Morgan said.
In light of the problems caused by previous mergers and the threat of reducing the nation’s rail system, to two carriers, “bold action” was required, Morgan said.
' Hutchison said the moratorium will provide Congress the opportunity to “do our job” by passing new legislation that will give the STB guidelines as to future rail mergers. She urged shippers and rail carriers to work with her committee, so that Congress will come up with “balanced legislation” that will benefit both railroads and shippers.
Congress, along with the STB, has a role to play in future rail policies, Hutchison said. “Sitting on the sidelines simply will not do, while we witness the rapid integration of the rail industry. The number of Class 1 railroads has gone from 63 in 1976 to seven today.”
A straight re-authorization of the STB, without any further policy directives, will not “pass muster with the majority in Congress,” Hutchison said. “Congress must tackle the competitive issues that have resulted from consolidation when we re-authorizes the STB.”
Hutchison said she recently introduced legislation will “make it the policy of the STB to promote rail competition,” and ease the plight of captive rail shippers.