SerpApi.Org
WASHINGTON - The Surface Transportation Board today (July 21) turned down a bid by BNSF Railway to serve two quarries on Union Pacific trackage in Texas and Arkansas, saying BNSF had not demonstrated it was entitled to such access.
In another case, the board set compensation terms for BNSF trackage rights in the Lake Charles, La., area, which were established by the STB as a condition of the UP-SP merger.
Granite Mountain decision
BNSF had argued that it had been granted the right to serve the Granite Mountain quarries because they went from service by both UP and Southern Pacific to UP-only at the time of UP's acquisition of SP in 1996. BNSF was granted the right to serve such "2-to-1 customers" as part of the merger.
In its filing last year seeking access, BNSF argued that UP's refusal to permit it to serve the quarries indicated its unwillingness to fulfill conditions of the UP-SP merger, and said that reflected on what UP might do if its merger with Norfolk Southern is approved [see "BNSF questions Union Pacific's compliance …," Trains.com, Nov. 25, 2025].
UP, in its response, argued that Southern Pacific had never served the quarries. The board said in its ruling that UP had offered "the more convincing interpretation of the relevant tariff" - namely that Granite Mountain did not appear on a list of shippers that SP had the right to access via reciprocal switching, and that Granite Mountain said at the time that the UP-SP merger would provide the opportunity to reach markets served by SP. "If Granite Mountain did in fact have access to SP at the time of the merger," the board wrote in its decision, "it is unlikely Grant Mountain would have made a statement about potentially accessing SP in the future."
Lake Charles traffic rights
In a press release, the board said its decision in the Lake Charles case "reaffirms its commitment to preserving competitive rail options for Lake Charles-area shippers, ensuring that multiple carriers can serve the region efficiently. … Today's decision not only establishes a clear, durable compensation framework, but also strengthens the foundation for continued competitive rail service and infrastructure investment in the Lake Charles region."
The board in 2016 granted BNSF terminal trackage rights over the Rosebluff Lead in Lake Charles, jointly owned by Kansas City Southern and Union Pacific, and subsequently set conditions for BNSF to serve a LyondellBasell chemical plant in West Lake Charles. But the three parties were unable to agree to terms and conditions for BNSF's use of the Rosebluff Lead, spurring the STB's proceeding announced today, setting payments for both UP and KCS (now CPKC).
The full decision is available here.
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