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10/4/2004



Rail News: Rail Industry Trends

CPR, NS seek STB approval for portion of Northeast haulage-sharing plan



On Friday, Canadian Pacific Railway and Norfolk Southern Corp. filed documents with the Surface Transportation Board seeking approval of several trackage rights transactions. The rights are part of a plan — announced in June — under which CPR and NS will share freight hauls and yard operations in the Northeast to increase operational efficiency and improve service.

NS is seeking STB authority to operate trains on CPR's Delaware and Hudson Railway subsidiary between Saratoga Springs and Binghamton, N.Y.; CPR is seeking board approval to discontinue the Delaware and Hudson's trackage rights that enable the railroad to operate trains on NS' line between Binghamton and Buffalo, N.Y.

Under new freight haulage agreements, CPR will move NS' freight traffic between Rouses Point and Saratoga Springs, and NS will move CPR's traffic between Buffalo and Binghamton. NS will provide yard switching services for CPR's cars in Buffalo; CPR will provide yard switching services for NS' cars in Binghamton.

In addition, NS will create a shorter Detroit-to-Chicago route. Expected to open next year, the route would provide CPR a faster, lower-cost lane between two of North America's largest transportation hubs.

CPR and NS officials expect to begin implementing measures later this year and complete the plan in late 2005.


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