Media Kit » Try RailPrime™ Today! »
Progressive Railroading
Newsletter Sign Up
Stay updated on news, articles and information for the rail industry

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

View Current Digital Issue »


Rail News Home M&A


Rail News: M&A

BNSF, NIT League conditionally support KCS' NAFTA Rail plan


In an Aug. 4 filing with Surface Transportation Board, Burlington Northern Santa Fe agreed to support Kansas City Southern's proposed NAFTA Rail plan as long as U.S.-Mexico gateways at Laredo and Brownsville, Texas, are kept open "at commercially reasonable terms."

Shippers currently can access the Laredo gateway via Union Pacific Railroad, BNSF/The Texas Mexican Railway Co. or KCS/Tex-Mex. BNSF obtained access to both gateways via trackage rights from UP as part of the Southern Pacific Railroad merger.

"The diminution of Tex-Mex as a neutral, non-controlled bridge carrier could weaken the competitive discipline that BNSF provides to UP over the Laredo gateway," BNSF officials said in the filing. "The transaction could result in a stronger interline connecting carrier with which BNSF could work to enable it to provide better competition."

KCS plans to place The Kansas City Southern Railway, Tex-Mex, Gateway Eastern Railway Co. and TFM S.A. de C.V. under the common control of NAFTA Rail, a Kansas City, Mo.-based holding company.

Meanwhile, KCS and National Industrial Transportation League reached an agreement Aug. 5 under which the shipper association will support NAFTA Rail if KCS meets "certain operating conditions" with shippers.