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Rail News: Rail Industry Trends

NS, chemical shipper settle rate dispute with assist from mediation, new STB guidelines


Last week, Norfolk Southern Corp. and BP Amoco Chemical Co. reached a mediated settlement, bringing to a close the first case filed under the Surface Transportation Board’s small rate case guidelines.

BP Amoco had challenged the reasonableness of NS’ rate to move paraxylene from Decatur, Ala., to Kingsport, Tenn. Now, the shipper has asked the STB to dismiss the case.

“This settlement shows that problems can best be resolved at the negotiating table,” said STB Chairman Roger Nober in a prepared statement. “This also demonstrates that our small rate case guidelines can provide an effective process for resolving disputes.”

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More News from 6/27/2005