Posts Tagged ‘CSX Masena Line’

CN Sues STB Over Line Sale Stipulation

April 29, 2021

Canadian National has gone to court to overturn a U.S. Surface Transportation Board edict in its proposed purchase of a CSX line.

The lawsuit, filed in the U.S. Court of Appeals for the Seventh Circuit, seeks to set aside some conditions the STB imposed when it approved the sale.

CN argues that the STB is required to approve a line sale unless the competitive harm of the transaction outweighs its benefits.

The transaction in question is 263.3 miles of the CSX Massena line between Syracuse, New York, and Montreal.

CN has proposed acquiring the track through its U.S. subsidiary Bessemer & Lake Erie

In approving the sale, the STB made it contingent upon the railroads removing a clause that would forever prohibit CN from seeking to interchange traffic with short lines Finger Lakes Railway and New York, Susquehanna & Western in the Syracuse area.

After CN and CSX were unable to come to terms with that stipulation, they asked the STB to reconsider its decision.

But the board refused and the line sale has been in limbo since late February.

Shipper Supports Effort to Drop Line Sale Condition

June 19, 2020

An intermodal shipper is supporting the efforts of CSX and Canadian National to persuade the U.S. Surface Transportation Board to drop a condition that it imposed in approving a line sale in New York State.

The STB in approving the sale of the CSX Massena Line to CN had required the parties to drop a clause in the sale contract that prohibits CN from negotiating direct interchange agreements with the Finger Lakes Railway and the New York, Susquehanna & Western in Syracuse, New York.

Atlantic Container Line said the acquisition of the Masena Line by CN could reduce transit times for shipments by 24 hours.

“We are concerned that these anticipated benefits will not be achieved if the transaction is not able to move forward,” the company said in its letter to the STB.

CSX and CN have said that the sale could fall through due to STB’s insistence on the interchange prohibition.

CSX has said it fears it will lose interchange business if CN if able to reach interchange agreements with short line railroads in Syracuse.

B&LE to Operate CSX Line in New York

April 8, 2020

The Bessemer & Lake Erie will be expanding soon, but it won’t be in either Ohio or Pennsylvania.

Instead the B&LE will acquire on behalf of parent Canadian National a CSX line in New York State that reaches into Canada.

The U.S. Surface Transportation Board on Monday approved B&LE’s acquisition of the Massena rail lines, a 236-mile system that stretches from Woodard, New York, to Valleyfield, Quebec.

CN and CSX will use the route to interchange traffic, which makes up 45 percent of the freight moved on the line.

In a filing with the STB, CN said acquiring the line will ensure that traffic using the lines continues to move directly between the two railroads rather than through an additional, unaffiliated railroad.

The transaction will become effective on May 21.

The STB some conditions sought by competing rail lines including an attempt by the Finger Lakes Railway to gain direct interchange with CN in Syracuse, New York.

However, the STB did direct CSX and CN to remove a clause in the sale agreement that would have prohibited from ever negotiating interchange in Syracuse with Finger Lakes and the New York, Susquehanna & Western.

Currently, CN and CSX interchange traffic in Huntingdon, Quebec, but it will now be moved to DeWitt Yard in Syracuse and Belle Isle Yard near Solvay, New York.

CN plans to operate a pair of trains carrying manifest freight and intermodal traffic between Montreal and Syracuse.

The intermodal traffic originates in Montreal and Toronto and is bound for ports in Philadelphia, New York and New Jersey.