STB ENDS FORMAL OVERSIGHT OF CN-IC MERGER

STB ENDS FORMAL OVERSIGHT OF CN-IC MERGER    The U.S. Surface Transportation Board has discontinued formal oversight of the Canadian National and Illinois Central railroad merger.
   The STB said it based its decision after finding no competitive or other problems during the first and second annual rounds of general oversight of the merger.
   The CN-IC merger was approved by the STB in May 1999 under the condition that the agency would have general oversight of the competitive and service aspects of the merger for up to five years.
   In its second progress report, the STB found that CN had added new transportation services and improved transit times throughout its system. Rail competition was not muted by CN’s alliance with Kansas City Southern, and there have been no complaints regarding access through the Chicago gateway by North Dakota grain shippers or the pricing practices of Canadian lumber. CN also sold its 50-percent interest in the Detroit River Tunnel.
   “In view of the overall affirmative record, there is no apparent need to continue formal oversight for the full five-year term or, for that matter, the next year,” the STB said.
   However, the STB said it retains the authority — independent of formal oversight process — to enforce or revise merger conditions on its own initiative or upon request of shippers.