The merger of Canadian Pacific with Kansas City Southern
has taken place, and the
Roodhouse Doodlebug Line is still, by virtue of Illinois Central Gulf having sold off that bit to a company that became part of Kansas City Southern, part of the new all-continent railroad. If you're a rent-seeker, you still seek rents, even if that means
going back to court.
Chicago commuter operator Metra has become the third entity to sue over the Surface Transportation Board’s approval of the Canadian Pacific-Kansas City Southern merger.
In a single-page filing with the board, Metra notified the STB today (Wednesday, May 17) that it had initiated a suit on May 12 in the U.S. Court of Appeals for the District of Columbia, seeking review of the March 15 decision creating Canadian Pacific Kansas City. Metra’s court filing calls the board’s decision “arbitrary, capricious, an abuse of discretion, an otherwise not in accordance with law or supported by substantial evidence.” It offers no specifics.
The language is identical to earlier suits filed by Union Pacific [see “Union Pacific challenges STB’s Canadian Pacific-Kansas City Southern merger decision,” Trains News Wire, May 5, 2023] and the Coalition to Stop CPKC, a group of Chicago suburbs [see “Chicago suburbs sue over CPKC merger,” News Wire, May 12, 2023].
The suit asks that the appeals court send the matter back to the STB “to correct its legal deficiencies.”
Metra's immediate objection is to the possibility of freight train interference, something they have lots of experience with as a tenant at Chicago Union Station and on several of the lines they operate.
Metra strongly opposed the merger, contending it will have a negative effect on commuter operations on two lines shared with CPKC, and sought significant conditions to mitigate those impacts. None were granted.
Perhaps most significantly, the commuter agency asked for dispatching control over the two shared routes. They are currently dispatched by the freight railroad in an agreement dating to the demise of the former owner, the Milwaukee Road. In a post-merger press conference, STB Chairman Martin J. Oberman said the board did not order the change “because we do not think the data requires it or supports it, and it would cause us, in effect, to break a contract.” [see “Metra, Chicago suburbs see few concerns addressed …,” News Wire, March 15, 2023].
In today's railroading, the most direct route between cities is not necessarily the fastest route, particularly as traffic builds.
Metra’s opposition reflects, among other issues, disagreement with traffic modeling used by CP and KCS in their merger application. Metra’s own modeling indicated post-merger traffic growth would “break the rail system” on a single-track portion of the direct CPKC route between Minneapolis-St. Paul and Kansas City, leading trains to be rerouted through Chicago, to the detriment of the Metra Milwaukee-North and Milwaukee-West lines.
That direct route, which runs along the west bank of the Mississippi River from the Twin Cities to the Quad Cities by way of La Crescent, Minnesota, and Dubuque, Iowa, was a freight-only secondary line for much of The Milwaukee Road's recent history, but now it competes with Burlington's, er, BNSF's, similarly indirect line from the Twin Cities to Kansas City by way of Galesburg and Quincy. The traffic volume? It approximates to
a busy operating session at the Fox Valley O Scalers, which models a portion of the line from La Crescent to Green Island, Iowa, back in the day when meat
trains out of southwestern Minnesota and western Iowa got onto the line at Marquette, Iowa.
Sometimes, that competition turns unpleasant.
We'll return to the exegesis of the litigation after a brief interlude at Savanna, Illinois.