Moratorium Ordered On Railroad Mergers

The federal government ordered a moratorium on railroad mergers Friday while it considers new rules for such combinations.

The order temporarily derails the controversial joining of Burlington Northern and Santa Fe Railway and Canadian National railroads, opposed by numerous Inland Northwest interests.

The Surface Transportation Board issued the order following hearings on the proposed $6 billion merger, which would create a network of 50,000 miles of track from Nova Scotia to Los Angeles and the Gulf of Mexico to Vancouver, British Columbia.

The proposal came on the heels of a string of mergers during the 1990s that caused rail car shortages, shipping delays and depressed stock prices.

Friday’s decision was met with applause in the Inland Northwest.

Opponents of a recently approved BNSF diesel refueling depot near Rathdrum want the merger stopped.

If there is a spill at the 500,000-gallon facility, it could be harder to hold a Canadian-based company responsible, jeopardizing the aquifer that supplies 400,000 people with drinking water, they say.

“My biggest fear is dealing with a company that is based in Canada and what kind of control we would have over them legally if a problem arises because of international boundaries,” said Wayne Bailey, a member of opposition group Friends of the Aquifer.

Washington and Idaho farmers and grain grower cooperatives fret over the merger tying up lines that serve the Washington towns of Ritzville, Waterville, Reardan and Odessa.

Wheat growers worry the merger will lead to delays and compound problems of capacity when Midwest shipments fill trains before they get here.

“I hope they look into all aspects of the merger, especially with supply and demand of hopper cars in the Pacific Northwest,” said Gretchen Borck, spokeswoman for the Washington Association of Wheat Growers.

The transportation board said it has directed railroads not to pursue further mergers until it adopts new rules, which should occur within 15 months.

Staff writer Zaz Hollander contributed to this report.