Contact: Dennis Watson
04/09/2004 (Friday)
(202) 565-1596
No. 04-12
FIRS 1 (800) 877-8339

Surface Transportation Board Approves Canadian National
Acquisition of Great Lakes Transportation, LLC. Carriers

Surface Transportation Board Chairman Roger Nober today announced the approval, subject to conditions, of the application of Canadian National Railway Company and Grand Trunk Corporation (CN) to acquire three railroads currently controlled by Great Lakes Transportation, LLC: the Duluth, Missabe and Iron Range Railway Company (DMIR), the Bessemer and Lake Erie Railroad Company, and The Pittsburgh & Conneaut Dock Company. The acquisition of a fourth affiliated water carrier, Great Lakes Fleet, Inc., is regulated by other federal agencies.

In announcing the decision approving the merger, Chairman Nober said:

“This minor transaction connects two transportation systems that do not compete, but complement each other, and will improve rail transportation in this part of the Great Lakes region. I expect CN will work hard to integrate the companies smoothly so that shippers in the region receive quality service.”

In approving the application, the Board imposed a number of conditions on the transaction, including:

! Imposing a one-year period of Board oversight over the transaction;

! Requiring CN to keep all existing active gateways open;

! Requiring CN to waive its defenses regarding rate regulation on bottleneck line segments created by the transaction; and
! Requiring CN to adhere to the terms of the settlement reached with The Burlington Northern and Santa Fe Railway Company regarding potential construction of build-outs;
! Requiring CN to address certain concerns raised by some shippers about the change in the competitive balance where CN and DMIR operate parallel lines;

! Imposing the agreement between CN and labor unions that required standard New York Dock labor protections, but did not require employees whose jobs were transferred to Canada to move to Canada to qualify for those protections; and
! Requiring CN to continue to cooperate with the Federal Railroad Administration in implementing the Final Safety Integration Plan.

The Board’s decision was issued today in the case entitled Canadian National Railway Co. and Grand Trunk Corp. - Control - Duluth, Missabe and Iron Range Railway, Co., Bessemer and Lake Erie Railroad Co., and the Pittsburgh & Conneaut Dock Co., STB Finance Docket No. 34424, Decision No. 7. A printed copy of the decision is available for a fee by contacting ASAP Document Solutions, 9332 Annapolis Road, Suite 103, Lanham, MD 20706, telephone (301) 577-2600, or via The decision also is available for viewing and downloading via the Board's website at