Surface Transportation Board to hear from shippers on BNSF-Berkshire deal

RELATED TOPICS: CLASS 1 FREIGHT RAILROADS
Trains Industry Newsletter
Get a weekly roundup of the industry news you need.
By signing up you may also receive occasional reader surveys and special offers from Trains magazine. View our privacy policy.
bnsf-smedley
Steve Smedley
WASHINGTON — Bowing to pressure from some rail shippers, the Surface Transportation Board will hold hearings on Berkshire Hathaway’s 2010 acquisition of BNSF Railway. At issue is whether Berkshire is recouping part of the $43 billion it paid for BNSF by charging customers higher rates, as BNSF critics claim.
 
The board, which has the power to overturn rates it deems unreasonable upon a shipper’s challenge, uses a formula called the Uniform Rail Costing System to determine whether or not a rate is reasonable. The Western Coal Traffic League, which represents a group of critical BNSF shippers, claims the Berkshire deal drove up the railroad’s net investment base by $8.1 billion. The group is urging the board to make a corresponding adjustment to the costing system so that shippers aren’t forced to bear the cost.
 
The board will hold the hearing March 22.

NEWSWIRETrains News Wire

  • Previous Day
  • February 16, 2012
  • Next Day
Leave a Comment
Want to leave a comment?
Only registered members of TrainsMag.com are allowed to leave comments. Registration is FREE and only takes a couple minutes.

Login or Register now.
Please keep your feedback on-topic and respectful. Trains staffers reserve the right to edit or delete any comments.
0 COMMENTS
FREE DOWNLOAD

FREE DOWNLOAD

The Genesee & Wyoming 

Newsletter Sign-Up

By signing up you may also receive occasional reader surveys and special offers from Trains magazine.Please view our privacy policy
Subscribe Up To 58% off the newsstand price!
Subscribe To Trains Mag Today
+