Bill gives communities more consideration in rail mergers

The federal Surface Transportation Board, which currently regulates the process, was created in 1995 as an outgrowth of the Interstate Commerce Commission. It oversees rail rates, railroad mergers and rail line abandonments with an eye toward promoting the health of the nation's rail system.

The main hurdle railroads face before the transportation board is proving that a merger is not anti-competitive.

In the case of mergers or acquisitions, the board encourages communities to reach their own agreements with the railroads to address negative community impacts, though the board can also require a railroad to take action to lessen negative impacts.

Legislation pending in Congress would make impacts on the health of communities caused by a proposed rail transaction just as important as its impacts on the health of the rail industry.

The aim of the bill is to give local communities and agencies more weight in getting their concerns addressed by the transportation board, which local and federal officials have seen as unsympathetic to the local consequences of the national rail transactions.

U.S. Rep. Pete Visclosky, D-Merrillville, a co-sponsor of the bill, said the chances of the bill passing before session adjourns on Sept. 26 are slight, but that legislators -- many of whom are from the area impacted by the EJ&E sale -- would keep pushing, if nothing else to bring more attention to the issue.

"We need to make sure, as we proceed, that there is balance brought back into the consideration the Surface Transportation Board has to give to these matters," Visclosky said.

The House Committee on Transportation and Infrastructure will be holding a hearing on the bill on Sept. 10, where John Swanson, executive director of the Northwestern Indiana Regional Planning Commission, as well as Stan Dobosz, Griffith town councilman, will offer testimony at the hearing.