newpylong wrote:PAS will now pay market value car mile fees but not be burdened by any of the proposed BS operating restrictions.
A succinct summary of the 58 page STB decision (to be effective November 30, 2017)!
https://www.stb.gov/decisions/readingro ... /45970.pdf
If I read the decision correctly, the trackage rights fee will increase over 5X from $0.20 per car mile (empty or loaded) of the CV days to a more competitive $1.06 per car mile with no escalator if PAS carloads exceed 32,500 annually (terms of former B&M and CV agreement - that's almost 100 carloads per day and I'm guessing PAS' current traffic between E Northfield and WRJ doesn't approach that threshold).
And as indicated above, after lengthy debate, STB says the new PAS-NECR agreement will not preclude PAS haulage of freight for 3rd parties.
However, as discussed above, it appears that the current TO has allowed haulage traffic for decades [e.g., for NS], without dispute until the last few years. PAS also claims
that haulage has resulted in more options for shippers, thereby encouraging greater use of rail over truck, and that by now restricting haulage, PAS could be left at a competitive disadvantage.
(PAS Reply, V.S. Bostwick 3-4.) Because NECR has not demonstrated a sufficient basis to disrupt this long-standing, workable arrangement, the Board will continue to permit PAS to carry
haulage traffic under the new TO.
There was quite a bit of back and forth discussion between the parties re: Assignment of PAS trackage rights to either "affiliates" (not sure what this term means - NS? PAR?) or non-affiliates (?). Here's how the CV agreement's language was modified wrt Assignment:
9.8 Assignment. This Agreement shall bind and inure to the benefit of the parties and their respective legal representatives, successors and assigns. PAS shall have the right to assign any
or all of PAS's rights and obligations under this Agreement to any affiliate of PAS, following consultation with NECR and the receipt of any required regulatory or other approvals. PAS shall
have the right to assign any or all of PAS's rights and obligations under this Agreement to any other person with NECR's prior consent, which shall not be withheld unreasonably, and following the receipt of any required regulatory or other approvals.
I'm probably reading too much into this but my interpretation is NS or PAR (or Watco or other party) could operate under this agreement down the road as long as STB approved.
Idle question: what role if any did NECR parent G&W play in resolving this dispute that pre-dated G&W's arrival on the scene? I could see a scenario where NS consumes PAS (at long last) and G&W takes PAR, connecting its P&W/CSOR/NECR/SLA properties with interchange to the NBS/EMR and the maritimes at Mattawamkeag.