STB ALLOWS IC&E RAILROAD CORP. TO ACQUIRE I&M RAIL RINK LINES

STB ALLOWS IC&E RAILROAD CORP. TO ACQUIRE I&M RAIL RINK LINES    The Surface Transportation Board on Monday said it has denied requests by labor organizations and the Iowa Department of Transportation to hold up efforts of a non-carrier to acquire and operate the rail lines of I&M Rail Link LLC.
   By denying the stay requests and removing a temporary stay imposed earlier, STB allowed the exemption authority to become effective on Monday. With this action, the Iowa, Chicago & Eastern Railroad Corp., which is affiliated with the Dakota, Minnesota and Eastern Railroad, may proceed with its acquisition of IMRL.
   However, the move will be subject to further scrutiny when STB considers requests made by some parties to revoke the exemption for this transaction.
   STB said allowing the acquisition to proceed presents “the best opportunity for uninterrupted, and possibly improved, service to shippers on the IMRL system.” Under the asset-purchase agreement between IC&E and IMRL, IC&E must complete the acquisition by the end of July. According to IC&E, IMRL’s lenders said that, if the transaction were not completed in a timely manner, IMRL would “most likely” face bankruptcy.
   The Iowa DOT and the U.S. Department of Transportation have raised concerns regarding the relationship between IC&E and DME, which was recently authorized by STB to undertake a $1-billion project to upgrade its existing system and to build a new rail line into Wyoming’s Powder River Basin. IADOT and DOT said there could be cumulative effects of new DME coal traffic from the Basin moving over IC&E lines.
   The STB’s decision may be obtained on the Internet at: https://www.stb.dot.gov.