STB’s MORGAN TO STAND FIRM ON RAIL MERGER RULES

STBÆS MORGAN TO STAND FIRM ON RAIL MERGER RULES    Surface Transportation Board chairman Linda Morgan reassured Congress Wednesday that her agency is highly unlikely to abandon proposed merger rules which would place heavier justification burdens on rail carriers in future industry mergers.
   Opposed by the rail industry and generally supported by shippers, the proposed rules would require railroads to show that future rail mergers would not only preserve, but enhance competition. Merger applicants would also have to provide detailed service plans and annual filings with the STB to comply with the extensive five-year oversight duties the agency has proposed.
   “We are looking to raise the bar” for future rail merger applicants, Morgan said in an appearance before the Senate Subcommittee on Surface Transportation and Merchant Marine.
   Later, Morgan said her agency will continue its strong stand on the merger rules, despite opposition from the rail industry. “It would take quite a lot to turn the clock back on the proposed rules,” she said.
      The STB will hear final oral arguments over the proposed rules on April 5.
   Morgan said she is unaware of any future mergers being discussed. Future mergers 'will depend on the economy” and how the rail industry and the investment community will view the new STB rules, which are expected to be issued in early June, said.