STB approves purchase of DM&E Railroad
The Surface Transportation Board has approved the proposed acquisition of the Dakota, Minnesota & Eastern Railroad Corp. and its wholly owned railroad subsidiary, the Iowa, Chicago & Eastern Railroad Corp., by the Canadian Pacific Railway Corp. and its indirect subsidiary, the Soo Line Holding Co.
But any plans to extend the DM&E into the Powder River Basin and haul coal would have to pass environmental muster with the STB.
“The DM&E is an excellent fit for Canadian Pacific making this a strategic end-to-end addition to our network,” said Fred Green, president and chief executive officer of CP. “This is also a positive development for CP, DM&E and IC&E customers. CP customers will have direct single line access to the Midwest U.S. markets and the Kansas City gateway, which will improve fluidity to and from the southwest U.S. and Mexico.”
The STB said in reaching its decision, it found:
' Minimal operational overlap among the involved railroads.
' No shipper would lose the option of competitive rail services as a direct result of the transaction.
' The transaction won't result in a substantial lessening of competition, the creation of a monopoly, or a restraint of trade in freight surface transportation in any region of the United States.
' Any minor, geographical competitive effects that may flow from the transaction are outweighed by its public-interest benefits.
The STB also addressed the potential environmental impacts of future coal train movements over the lines. It said if CP decides to construct the new rail line into the Powder River Basin, then it may not transport any coal originating on the new line until the STB prepares an environmental impact statement addressing the environmental impacts of those movements and the agency has issued a final decision allowing such operations to begin.
