The Surface Transportation Board has ruled that Canadian Pacific Kansas City can continue using Union Pacific Railroad tracks to transport grain shipments to Gulf Coast ports, preserving competitive options for agricultural exporters.
The decision, announced Monday, upholds haulage rights originally established in 1988 that allow Kansas City Southern Railway Company, now part of CPKC, to move grain traffic over UP tracks between Beaumont, Texas, and the ports of Houston and Galveston.
At issue was whether KCSR could continue using these rights to transport grain originating from north and east of Kansas City, including from points served by Canadian Pacific in North Dakota and elsewhere.
"The Board's ruling today underscores our commitment to competition within the rail industry," said STB Chairman Patrick Fuchs. "By enforcing this merger condition and affirming the continued use of these haulage rights, the Board preserves routing options for agricultural shippers, helping support a strong supply chain and market access for American exports."
The board determined that "interchange" in the 1988 agreement includes traffic exchanged between rail carriers under common control, meaning KCSR can transport grain originating from carriers now part of the CPKC system.
Board Member Primus issued a dissenting opinion to the decision.
