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Article: New rules raise the bar for rail mergers.
- Article from:
- Logistics Management & Distribution Report
- Article date:
- July 1, 2001
CopyrightCOPYRIGHT 2001 Reed Business Information. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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By adding new conditions far rail mergers, the Surface Transportation Board aims to enhance competition and protect service. But do the new rules go far enough?
New rules issued by the Surface New Transportation Board last month will make it more difficult for proposed rail mergers to gain approval. Because so few Class I railroads (defined as those with at least $250 million in revenue) remain and because rail mergers are no longer needed to address excess capacity, the board said, "future merger applicants will be required to bear a heavier burden to show that a major rail combination is consistent with the public interest in the rail industry."
The ...