SURFACE TRANSPORTATION BOARD DECISION DOCUMENT
    Decision Information

Docket Number:  
FD_36294_0

Case Title:  
TNW CORPORATION--CONTINUANCE IN CONTROL--MIDWESTERN RAILWAY SERVICES, CORPORATION

Decision Type:  
Notice Of Exemption

Deciding Body:  
Director Of Proceedings

    Decision Summary

Decision Notes:  
PROVIDED NOTICE THAT TNW CORPORATION HAS FILED A NOTICE OF EXEMPTION TO CONTINUE IN CONTROL OF MIDWESTERN RAILWAY SERVICES, CORPORATION (MRS) UPON MRS’S BECOMING A CLASS III RAIL CARRIER.

    Decision Attachments

70 KB


Approximate download time at 28.8 kb: 46 Seconds

Note:
If you do not have Acrobat Reader, or if you have problems reading our files with your current version of Acrobat Reader, the latest version of Acrobat Reader is available free at www.adobe.com.

    Full Text of Decision

Docket No. FD 36294

47011                                 SERVICE DATE – MAY 17, 2019

DO

FR-4915-01-P

SURFACE TRANSPORTATION BOARD

[Docket No. FD 36294]

TNW Corporation—Continuance in Control Exemption—Midwestern Railway Services, Corporation

TNW Corporation (TNW), a noncarrier, has filed a verified notice of exemption pursuant to 49 C.F.R. § 1180.2(d)(2) to continue in control of Midwestern Railway

Services, Corporation (MRS) upon MRS’s becoming a Class III rail carrier.  

This transaction is related to a concurrently filed verified notice of exemption in Midwestern Railway Services, Corp.—Operation Exemption—Perry County Port Authority, Docket No. FD 36293.  In that proceeding, MRS seeks an exemption under 49 C.F.R. § 1150.31 to operate approximately 20.6 miles of rail line between milepost 1.8 at Tell City, Ind., and milepost 22.4 at Lincoln City, Ind.

The earliest this transaction may be consummated is June 2, 2019, the effective date of the exemption (30 days after the verified notice was filed).

TNW will continue in control of MRS upon MRS’s becoming a Class III rail carrier, while remaining in control of the following Class III rail carriers that operate rail lines in Texas:  Texas and North Western Railway Company; Texas, Gonzales & Northern Railway Company; and Texas Rock Crusher Railway Company.  

TNW states that:  (1) the rail line to be operated by MRS does not connect with any lines of any other TNW-controlled rail carriers; (2) the proposed continuance in control of MRS is not part of a series of anticipated transactions that would connect the line to be operated by MRS with the rail lines of any other TNW-controlled carrier; and (3) the transaction does not involve a Class I rail carrier.  The proposed transaction is, therefore, exempt from the prior approval requirements of 49 U.S.C. § 11323 pursuant to 49 C.F.R. § 1180.2(d)(2).

Under 49 U.S.C. § 10502(g), the Board may not use its exemption authority to relieve a rail carrier of its statutory obligation to protect the interests of its employees.  However, 49 U.S.C. § 11326(c) does not provide for labor protection for transactions under §§ 11324 and 11325 that involve only Class III rail carriers.  Accordingly, the Board may not impose labor protective conditions here, because all of the carriers involved are Class III carriers.

If the notice contains false or misleading information, the exemption is void ab initio.  Petitions to revoke the exemption under 49 U.S.C. § 10502(d) may be filed at any time.  The filing of a petition to revoke will not automatically stay the effectiveness of the exemption.  Stay petitions must be filed no later than May 24, 2019 (at least seven days before the exemption becomes effective).

All pleadings, referring to Docket No. FD 36294, must be filed with the Surface Transportation Board either via e-filing or in writing addressed to 395 E Street, S.W., Washington, DC  20423-0001.  In addition, a copy of each pleading must be served on TNW’s representative, Bradon J. Smith, Fletcher & Sippel LLC, 29 North Wacker Drive, Suite 800, Chicago, IL  60606. 

Board decisions and notices are available at www.stb.gov.

Decided:  May 13, 2019.

By the Board, Allison C. Davis, Acting Director, Office of Proceedings.