US: US GOVERNMENT TO RULE ON RAIL MERGER STATUS
Article Abstract:
The Association of American Railroads (AAR) is awaiting new rules due in 2001 which will have significant effect on the individual railroad companies abilities to merge with each other. Following complaints from shippers over long disruptions caused by merger related problems between railroad companies, the federal Surface Transportation Board (STB) placed a moratorium on mergers for 15 months during which time it has considered the merger position and is expected to make its ruling on the matter by June 2001. In the future, mergers will have to enhance competition not just sustain it at current levels. The burden will fall on companies applying to merge with another to prove that the move would be in the public interest. Over the past 20 years government policy has been pro-merger and the industry has enjoyed a period of deregulation but these new rules represent a change in policy. AAR president and chief executive, Edward Hamberger claims the rules are discriminatory. In addition to the STB ruling, the AAR is facing further legislation from the US Congress which would introduce more control over the industry. One bill covers the so-called bottleneck rates that single carriers charge shippers. The industry generates large revenue from these differential rates and cannot afford to lose it. Another bill could give the STB increased authority to open up railway lines to competing carriers. The AAR claims their industry is thriving and that they and not the government are better placed to regulate the railroads.
Publication Name: Daily Herald (Arlington Heights, IL)
Subject: News, opinion and commentary
ISSN:
Year: 2000
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UK: RAIL PROBLEMS REDUCE FREIGHT EFFICIENCY
Article Abstract:
Continued chaos on the rail network has resulted in a 50% cut in on-time delivery performance for freight operator English Welsh & Scottish Railway (EWS), according to its CEO Philip Mengel at a Rail Freight Council (RFC) meeting of the Freight Transport Association in December 2000. The RFC and some of the major rail freight users like Stora Enso, Ford and the Post Office, have called for a recovery plan by Railtrack to resolve the crisis and restore confidence in the country's rail freight industry. In November 2000 there was a 14% reduction in rail freight tonne km compared with the same period in 1999; before the Hatfield rail crash, the rate was 8% higher than in 1999.
Publication Name: Daily Herald (Arlington Heights, IL)
Subject: News, opinion and commentary
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Year: 2000
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EUROPE: LIBERALISATION OF RAIL FREIGHT
Article Abstract:
The European parliament and representatives of the Transport Council reached an agreement on 22 November 2000 which should liberalise rail freight in Europe, enabling free cross border access. According to a spokesman from Intercontainer Interfrigo, European operator and aggregator, in theory this decision is a long-awaited key to the future, but the practical benefits have yet to be tested. By 2003, all licensed rail operators will be entitled to have access to about 90% of the network which is used for freight services in 2000. By 2008, access should available to the whole network.
Publication Name: Daily Herald (Arlington Heights, IL)
Subject: News, opinion and commentary
ISSN:
Year: 2000
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