The Surface Transportation Board confirmed that the Kansas City Southern Railway Co. can transport grain using Union Pacific Railroad Co. tracks between Beaumont, Texas, and ports in Houston and Galveston, Texas.
This decision facilitates “competitive options” for shipping grain through Kansas City to ports along the Gulf Coast, according to a press release from the board. It upholds haulage rights originally established in 1988 when the STB’s predecessor, the Interstate Commerce Commission, approved a merger between Union Pacific and the Missouri-Kansas-Texas Railroad Co. Negotiating haulage rights for the Kansas City Southern Railway Co. was mandated by the ICC as part of the merger.
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The board's ruling "underscores our commitment to competition within the rail industry,” said STB Chair 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.”
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