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Rail News Home Federal Legislation & Regulation

12/27/2011



Rail News: Federal Legislation & Regulation

STB schedules oral arguments for chemical transportation dispute


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Last week, the Surface Transportation Board (STB) announced it will hear oral arguments on Jan. 17 regarding a chemical transportation dispute between BNSF Railway Co., Union Pacific Railroad and Canexus Chemicals Canada L.P.

BNSF currently moves Canexus Chemicals’ chlorine shipments between North Vancouver, British Columbia, and Kansas City, Mo., and between Marshall, Wash., and Kansas City in joint line service under temporary rates. The Class I interchanges with UP in Kansas City, where UP then hauls the shipments to final destinations in Illinois, Texas and Arkansas. According to a complaint Canexus Chemicals filed with the STB, BNSF plans to transport the chlorine only as far as Portland, Ore., for traffic originating from North Vancouver, and only as far as Spokane, Wash., for traffic originating from Marshall, where BNSF then would interchange with UP.

Canexus Chemicals and UP object to BNSF's proposed interchange points, and the chemical shipper has asked the STB to order BNSF to establish common-carrier rates and service terms for transportation between both the North Vancouver-Kansas City and Marshall-Kansas City routes.

Canexus Chemicals, UP and BNSF representatives each will have 30 minutes to present their arguments, according to the STB.


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