[Federal Register Volume 69, Number 54 (Friday, March 19, 2004)]
[Notices]
[Pages 13122-13123]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-6090]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34473]


CSX Transportation, Inc., Norfolk Southern Railway Company, and 
Consolidated Rail Corporation--Modified Rail Certificate

    On February 18, 2004, CSX Transportation, Inc. (CSX), Norfolk 
Southern Railway Company (NS), and Consolidated Rail Corporation 
(Conrail) (collectively, the parties) filed a notice for a modified 
certificate of public convenience and necessity under 49 CFR 1150, 
subpart C, Modified Certificate of Public Convenience and Necessity, to 
operate over certain

[[Page 13123]]

portions of the abandoned track of the former Staten Island Railway 
Corporation (SIRR) in New York and New Jersey lying generally between 
the Chemical Coast Secondary Line and points on Staten Island, NY. 
Based on the parties' representations, the lines to be activated for 
service include: (1) Track between milepost 3.8 at John Street east of 
Arlington Yard, Richmond County, NY, and milepost 6.9, via the Chemical 
Coast Secondary Line, at or near the connection between the Chemical 
Coast Connector and the Chemical Coast Secondary Line in Union County, 
NJ, a distance of 3.1 miles; \1\ (2) track between milepost 0.0 at or 
near Port Ivory, Richmond County, NY, and milepost 0.94 at the end of 
the line near Howland Hook, Richmond County, NY, a distance of 0.94 
miles; and (3) the ``Travis Branch'' between milepost 0.0 at Arlington 
Yard Station and milepost 3.65 in Richmond County, NY, a distance of 
3.65 miles.\2\ The lines to be used in providing service also include 
the new industrial lead and switching track to be constructed off of 
the Travis Branch \3\ into the New York City Department of Sanitation 
facility being constructed at the Fresh Kills landfill site on Staten 
Island (Fresh Kills facility).
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    \1\ On January 21, 2004, the Board served a decision in Port 
Authority of New York and New Jersey--Petition for Declaratory 
Order, STB Finance Docket No. 34428, finding that the construction 
by the Port Authority of New York and New Jersey (Port Authority) of 
the connector between the SIRR trackage and the Chemical Coast 
Secondary Line, and operations thereover, do not require Board 
approval. The parties will reach this segment via the connector. No 
trains will operate on the abandoned SIRR lines until 2005, when it 
is anticipated that construction of the connector will be complete.
    \2\ The SIRR was abandoned in two parts. Those segments subject 
to this proceeding that were approved for abandonment in Staten 
Island Railway Corporation--Abandonment, Docket No. AB-263 (Sub-No. 
3) (ICC served Dec. 5, 1991) include: (1) Track between milepost 3.8 
at John Street and milepost 12.09 at or near Cranford Junction, NJ; 
and (2) track between milepost 0.0 at or near Port Ivory and 
milepost 0.94 near Howland Hook. The Travis Branch was abandoned 
pursuant to authority granted in Staten Island Ry. Corp.--Aband. 
Exempt.--In Richmond County, NY, Docket No. AB-263 (Sub-No. 2X) (ICC 
served July 3, 1990). The lines were subsequently acquired by the 
States of New York and New Jersey. No freight rail traffic has moved 
over these lines since these abandonments became effective. Segments 
of the former SIRR that are not the subject of this proceeding are 
those that lie west of the Chemical Coast Secondary Line.
    \3\ On October 29, 2003, the New York City Economic Development 
Corporation (NYCEDC) filed a petition in The New York City Economic 
Development Corporation--Petition for Declaratory Order, STB Finance 
Docket No. 34429, for a declaratory order seeking certain 
determinations as to the Travis Branch. A decision in that case is 
pending.
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    The provision of freight rail service in this proceeding is a 
component of the Staten Island Railroad Revitalization Project, a joint 
effort between the Port Authority and NYCEDC. The parties state that, 
at this time, they are negotiating an operating agreement with NYCEDC 
that will govern how such freight rail service will occur.\4\
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    \4\ Following the negotiation of this operating agreement, the 
parties state that they will submit a petition seeking: (1) An 
exemption pursuant to 49 U.S.C. 10502 from the approval requirements 
of 49 U.S.C. 11323 to permit the parties to implement the operations 
described in the modified certificate in a manner described in the 
agreement; (2) a prior determination that the authority granted by 
the Board pursuant to the petition will automatically expire upon 
the termination of the modified certificate, and that Conrail will 
not be able to unilaterally terminate the modified certificate; and 
(3) a determination that the grant of authority under 49 U.S.C. 
11323 will not give Conrail any ratemaking, interchange, or other 
common carrier authority that it currently lacks. The parties 
indicate that a copy of the operating agreement will accompany the 
petition.
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    The parties anticipate that the traffic flows over the subject 
lines will primarily consist of the following: (1) Block movements of 
intermodal traffic, assembled by the Howland Hook Marine Terminal/Port 
Ivory operator, to and from Arlington Yard (Howland Hook Traffic); (2) 
movements of containerized municipal solid waste, assembled by the 
Fresh Kills facility operator, to and from the Fresh Kills facility 
(Fresh Kills Traffic); and (3) movements of mixed merchandise 
(including aggregates and paper products) to and from two potential 
customers located on the Travis Branch (Travis Branch Traffic).
    The parties indicate that, in general, Conrail will move the 
Howland Hook Traffic and the Travis Branch Traffic to and from Staten 
Island to the Conrail Shared Assets Areas for line haul movement via NS 
and CSX. Conrail will switch the Travis Branch Traffic, if and when it 
develops, directly from the customers' facilities. NS and/or CSX will 
likely serve the Fresh Kills Traffic directly. The parties state that 
Conrail will dispatch the subject lines, while NYCEDC will retain 
responsibility for maintaining the subject lines and operating the 
Arthur Kill Lift Bridge.
    The rail lines qualify for a modified certificate of public 
convenience and necessity. See Common Carrier Status of States, State 
Agencies and Instrumentalities and Political Subdivisions, Finance 
Docket No. 28990F (ICC served July 16, 1981).
    The parties indicate that the only precondition to a shipper's 
receipt of service is the execution of an agreement with CSX or NS that 
specifies the rates and other terms and conditions of the service such 
carriers will provide. They also indicate that: (1) There are no 
subsidizers, and (2) existing insurance covering the parties' current 
operations will be expanded to cover operations over the subject lines; 
no additional insurance will be acquired.
    This notice will be served on the Association of American Railroads 
(Car Service Division) as agent for all railroads subscribing to the 
car-service and car-hire agreement: Association of American Railroads, 
50 F Street, NW., Washington, DC 20001; and on the American Short Line 
and Regional Railroad Association: American Short Line and Regional 
Railroad Association, 50 F Street, NW., Suite 7020, Washington, DC 
20001.
    Board decisions and notices are available on our Web site at http://www.stb.dot.gov.

    Decided: March 12, 2004.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 04-6090 Filed 3-18-04; 8:45 am]
BILLING CODE 4915-01-P