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Surface Transportation Board June 22 directed Keokuk Junction Railway Co. (KJRY) to reopen an Iowa crossing to enable Burlington Northern Santa Fe to continue serving the Class I's long-time customers.
Since 1881, BNSF and its predecessors reached various Keokuk, Iowa, shippers by crossing KJRY's line, pursuant to a voluntary crossing agreement. Mississippi River flooding in the early 1990s damaged the 38-mile short line's track, prompting BNSF and KJRY to agree to move the crossing.
KJRY, which is owned and operated by Pioneer Railcorp, in 1998 terminated the crossing agreement and physically blocked BNSF from the track, according to the Class I's complaint filed with STB.
KJRY later created a new interchange arrangement, charging BNSF to place one of the short line's locomotives behind a BNSF train and push the train through the crossing. On return, KJRY places a locomotive at the front of a BNSF train and pulls the train back across.
BNSF requested that STB intervene and direct KJRY to permit the Class I to cross its track.
STB claims Section 10901(d) of U.S. Code Title 49 — which requires that new rail lines be licensed — prohibits railroads from preventing other roads from building new lines across their tracks to serve shippers.
In a response, KJRY officials claim there was no new construction involved because the original crossing was built more than 100 years ago — well before railroad licensing was required. And short-line officials said the 1995 crossing relocation didn't materially change the way shippers are served, meaning a license isn't required and the board lacks the authority to act under Section 10901(d).
STB determined that the section's legislative history shows Congress is concerned both that new construction not be blocked and that crossed railroads not prevent subsequent crossing operations.
"The purpose of a line construction in general, and crossing rights in particular, would be thwarted if a carrier could be required to allow its competitor to construct a crossing, but then — in a day, week or years later — block the other carrier from operating over the crossing track to service shippers in interstate commerce," STB noted in its decision, according to a prepared statement.