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5/13/2002



Rail News: Rail Industry Trends

STB permits IC to cross KCS' Louisiana track to serve chemical shipper


Surface Transportation Board May 13 granted Illinois Central Railroad Co. a petition authorizing the railroad to cross Kansas City Southern's track in connection with IC's plans to build and operate a 3.2-mile line in East Baton Rouge Parish, La.
The proposed line would enable IC to serve ExxonMobil Chemical Co.'s Baton Rouge polyolefins plant, which is served solely by KCS.
STB noted that IC agreed to furnish, install and maintain the crossing and signals, and compensate KCS for the crossing in accordance with board precedent.
KCS objected to the crossing on various grounds, emphasizing that line would interfere with its operations.
However, STB concluded that any interference would be neither material nor unreasonable. The board also ruled that, although the parties would be expected to negotiate remaining issues in good faith, the railroads remain free to submit disputes to STB relative to operation or compensation terms, and that the line's construction and operation need not be delayed pending resolution of any such disputes.
IC owner Canadian National Railway Co. in September 2000 announced plans to build the $4 million, 16,700-foot line, at the time expecting service to and from ExxonMobil's plant to start sometime this year and daily average 30 cars.


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