Source: Progressive Railroading
Summary
BNSF Railway Co. has submitted a revised application to the Surface Transportation Board (STB) for its proposed merger with Montana Rail Link Inc. (MRL). The revised application estimates that 303,000 intermodal containers will shift from rival railroads to BNSF, with St. Louis gateway concessions also outlined. The application also includes a revised market analysis and updated information on the proposed merger’s impact on the rail industry. According to BNSF, the merger will improve efficiency and reduce costs.
Our Reading
The trend returns with a new name.
BNSF’s revised application is just another example of the rail industry’s ongoing consolidation trend. The estimated shift of 303,000 intermodal containers from rival railroads is a clear indication of the market’s desire for efficiency and cost reduction. The St. Louis gateway concessions are a strategic move to strengthen BNSF’s position in the market. The revised market analysis and updated information on the merger’s impact are just formalities in the approval process. The real question is, what’s next for the rail industry?
Author: Evan Null
