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ARA Endorsed Comments to STB to Protect Shippers from Proposed Rail Merger

Feb 28 2022

ARA endorsed comments sent by the National Grain and Feed Association (NGFA) to the Surface Transportation Board with recommendations to protect shippers impacted by a proposed railroad merger of Canadian Pacific and Kansas City Southern.

Several areas in which the Board could do so include: 

  1. establishing or directing the railways to establish reasonable terms for the continued use of existing gateways post-merger; 
  2. clarifying that parties may challenge the reasonableness of Rule 11 rates established by the merged railroad at its interchanges with other railroads;
  3. conditioning merger approval on the applicants agreeing to enter into reciprocal switching arrangements at certain locations; and 
  4. enabling rail shippers and other customers of the merged railroad to seek payment of money damages for service failures that result from the railways failing to adhere to their representations concerning service levels post-merger.   

The comments also call on the Board to maintain oversight over the implementation of the merger transaction for at least five years, consistent with prior merger proceedings.