[Federal Register Volume 59, Number 179 (Friday, September 16, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-22992]


[[Page Unknown]]

[Federal Register: September 16, 1994]


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INTERSTATE COMMERCE COMMISSION
[Finance Docket No. 32533]

 

Burlington Northern Railroad Company, Inc. and Protexa Burlington 
International--Joint Application Under 49 U.S.C. 11321

AGENCY: Interstate Commerce Commission.

ACTION: Notice of Application and Institution of Proceeding.

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SUMMARY: Burlington Northern Railroad Company, Inc. (BN) and Protexa 
Burlington International (PBI) filed a joint application under the 
Panama Canal Act (the Act), 49 U.S.C. 11321, for (1) a determination 
that BN's ownership interest in and operation of PBI do not violate the 
provisions of the Act, and (2) approval, under 49 U.S.C. 11321(b), of 
BN's continued ownership interest in PBI to eliminate any question as 
to whether the anticipated expansion of PBI's operations may bring it 
within the scope of the Act.

DATES: An original and 10 copies of comments must be filed by October 
17, 1994. A copy of comments must be served on applicants' 
representative. An original and 10 copies of applicants' replies to 
comments must be filed by November 7, 1994. Applicants must serve their 
replies on all parties who file comments.

ADDRESSES: Send pleadings referring to Finance Docket No. 32533 to: (1) 
Office of the Secretary, Case Control Branch, Interstate Commerce 
Commission, Washington, DC 20423, and (2) applicants' representative, 
Betty Jo Christian, Steptoe & Johnson, 1330 Connecticut Avenue NW., 
Washington, DC 20036-1795.

FOR FURTHER INFORMATION CONTACT: Joseph H. Dettmar, (202) 927-5660. 
[TDD for hearing impaired: (202) 927-5721.]

SUPPLEMENTARY INFORMATION: BN is a class I railroad operating in the 
northwestern and central United States. PBI, a joint venture formed to 
offer rail-on-barge water transportation between the United States and 
Mexico, is owned equally by BN and Grupo Protexa S.A. de C.V., a 
Mexican marine and industrial firm based in Monterrey, Mexico. At 
present, BN provides rail service between United States points and 
Galveston, TX, under transportation contracts with PBI, while a PBI 
affiliate, PBI-Bahamas, a vessel operating common carrier, provides 
water transportation between Galveston and Coatzacoalcos, Mexico. BN's 
cars are then moved from Coatzacoalcos to other Mexican destinations by 
Ferrocarriles Nacionales de Mexico. Applicants state that their 
integrated operation improves BN's access to central and southern 
Mexican markets and that PBI's service may be expanded to Veracruz, 
Altamira, and other Mexican ports.
    The Panama Canal Act prohibits a railroad from acquiring an 
interest in a water common carrier in areas where both may compete for 
traffic, unless the Commission finds that, notwithstanding such 
competition, cross-ownership will allow the water carrier ``to be 
operated in the public interest * * * and that it will still allow 
competition, without reduction, on the water route in question.'' 49 
U.S.C. 11321(b). Applicants request the Commission to find that BN is 
not in violation of the Act, because it does not and cannot compete via 
all-rail service for the traffic handled by PBI. In light of PBI's 
anticipated expansion to other Mexican ports, applicants also seek 
approval of BN's ownership interest in PBI on the grounds that PBI's 
service will enhance, rather than reduce, competition on the water 
route and will continue to be operated in the public interest.
    Comments should address the competitive and public interest aspects 
of the joint application. In addition, comments may be directed to the 
impact, if any, on this proceeding of BN's recently announced proposal 
to merge with The Atchison, Topeka and Santa Fe Railway Company. Copies 
of the joint application are on file and may be examined at the Office 
of the Secretary, Interstate Commerce Commission, Washington, DC. 
Copies may also be requested from applicants' representative Betty Jo 
Christian, (202) 429-3000.

    Decided: September 6, 1994.

    By the Commission, Chairman McDonald, Vice Chairman Phillips, 
and Commissioners Simmons and Morgan.
Vernon A. Williams,
Acting Secretary.
[FR Doc. 94-22992 Filed 9-15-94; 8:45 am]
BILLING CODE 7035-01-P