[Federal Register Volume 71, Number 165 (Friday, August 25, 2006)]
[Notices]
[Pages 50499-50500]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-14034]


-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34908]


CSX Transportation, Inc., Norfolk Southern Railway Company, and 
Consolidated Rail Corporation--Modified Rail Certificate \1\
---------------------------------------------------------------------------

    \1\ The parties were previously granted similar authority in CSX 
Transportation, Inc., Norfolk Southern Railway Company, and 
Consolidated Rail Corporation--Modified Rail Certificate, STB 
Finance Docket No. 34473 (STB served Mar. 19, 2004). They have 
concurrently filed a notice of intent to terminate service 
authorized in that proceeding, stating that they did not conclude an 
agreement with the New York City Economic Development Corporation 
(NYCEDC) and the Port Authority of New York and New Jersey (Port 
Authority) in order to be able to commence operations.
---------------------------------------------------------------------------

    On August 8, 2006, CSX Transportation, Inc. (CSXT), Norfolk 
Southern Railway Company (NSR), and Consolidated Rail Corporation 
(Conrail) (collectively, the parties) filed a notice for a modified 
certificate of public convenience and necessity under 49 CFR part 1150, 
subpart C, Modified Certificate of Public Convenience and Necessity, to 
provide rail freight operations jointly and severally over 7.69 miles 
of abandoned rail line of the former Staten Island Railway Corporation 
(SIRR) in New York and New Jersey lying generally between the Conrail 
Chemical Coast Line and points on Staten Island, NY.\2\ The line 
consists of two segments as follows: (a) The North Shore Line between 
the end of track at milepost 4.6 at Union Avenue east of Arlington 
Yard, Richmond County, NY, and milepost 7.4, via the Chemical Coast 
Connector, at the proposed point of switch at the connection between 
the Chemical Coast Connector and Conrail's Chemical Coast Line in Union 
County, NJ, a distance of 2.8 miles;\3\ and (b) the Travis Branch 
between milepost 0.00 Arlington Yard Station and milepost 4.41 in 
Richmond County, a distance of 4.41 miles. Included within the North 
Shore Line segment are all tracks in Arlington Yard together with lead 
tracks on both the east and west ends of the yard, the so-called Wye 
Connector, that provides a direct connection to the Travis Branch from 
the North Shore Line and a track designated as the Travis Lead that 
provides a connection to and from the Travis Branch to the east end of 
Arlington Yard.\4\
---------------------------------------------------------------------------

    \2\ See Staten Island Railway Corporation--Abandonment 
Exemption--in Richmond County, NY, Docket No. AB-263 (Sub-No. 2X) 
(ICC served July 3, 1990), and Staten Island Railway Corporation--
Abandonment, Docket No. AB-263 (Sub-No. 3) (ICC served Dec. 5, 
1991). The lines were subsequently acquired by NYCEDC and the Port 
Authority.
    \3\ 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 and NYCEDC of the connector between the SIRR 
trackage and the Chemical Coast Secondary Line, and operations 
thereover, did not require Board approval. The parties will reach 
this segment via the connector.
    \4\ On October 29, 2003, NYCEDC filed a petition for a 
declaratory order seeking certain determinations as to the Travis 
Branch. See The New York City Economic Development Corporation--
Petition for Declaratory Order, STB Finance Docket No. 34429 (STB 
served July 15, 2004), in which the Board granted the request, 
finding that the proposed construction project did not require 
agency authorization and that federal preemption applied.
---------------------------------------------------------------------------

    The parties have concurrently filed a petition for exemption in STB 
Finance Docket No. 34909, CSX Transportation, Inc., Norfolk Southern 
Railway Company, and Consolidated Rail Corporation--Joint Use and 
Operation Exemption, wherein they are seeking approval to provide for 
the joint use of, and joint rail freight operations over, this line.
    No rail service has been provided over the line in more than 15 
years. 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 will provide 
rail freight operations over the line pursuant to an operating 
agreement as part of the project.\5\ That operating agreement, between 
the parties and NYCEDC, as administrator, provides for the parties to 
manage and maintain the line. The parties indicate that operations over 
the line are scheduled to commence on October 1, 2006 \6\ and continue 
for a 10-year term, which is renewable for an additional 10 years. 
According to the parties, they will not be obligated to commence 
operations and assume responsibility until the operating agreement has 
been signed and is fully in effect, which, among other actions, 
requires that: (1) Reconstruction of the line by NYCEDC is completed, 
Conrail has inspected the

[[Page 50500]]

line and is satisfied with the physical condition of the line, 
including, but not limited to, all signals and appurtenances, and the 
appropriate and necessary crews of the parties have been qualified to 
operate the line; and (2) the U.S. Coast Guard regulations and 
requirements with respect to the maintenance and operation of the 
Arthur Kill Lift Bridge are acceptable to Conrail.
---------------------------------------------------------------------------

    \5\ That agreement is attached as an exhibit to the notice.
    \6\ The parties seek expedited action by the Board in STB 
Finance Docket No. 34909 to permit rail operations to commence by 
that date, and have included a proposed procedural schedule to 
accomplish that goal.
---------------------------------------------------------------------------

    The parties state that there are three primary traffic flows 
anticipated over the line: (1) Intermodal traffic moving in blocks 
assembled by the Howland Hook Marine Terminal/Port Ivory carrier moving 
to and from Arlington Yard (Howland Hook Traffic); (2) containerized 
municipal solid waste trains assembled by the Fresh Kills facility 
carrier to and from the Fresh Kills facility (Fresh Kills Traffic); and 
(3) mixed merchandise (including aggregates and paper products) moving 
to and from two potential customers located on the Travis Branch 
(Travis Branch Traffic) that may, in the future, construct rail 
connections from their facilities to the Travis Branch in order to 
receive direct rail service.
    The parties indicate that, as currently planned, Conrail will move 
the Howland Hook Traffic and the Travis Branch Traffic between Staten 
Island and the North Jersey Shared Asset Area \7\ for line haul 
movement via NSR and CSXT. Conrail will switch the Travis Branch 
Traffic directly from the relevant customer's facilities, if and when 
it develops, between Staten Island and the North Jersey Shared Asset 
Area for line haul movement via NSR and CSXT. NSR and/or CSXT at a 
future time will likely provide service to the Fresh Kills Traffic and 
the Howland Hook Traffic directly, as that traffic is expected to move 
in unit train volumes. Conrail will dispatch the line.
---------------------------------------------------------------------------

    \7\ This area was established in CSX Corp. et al.--Control--
Conrail, Inc. et al., 3 S.T.B. 196, 228 (1998).
---------------------------------------------------------------------------

    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 any shipper's 
receipt of service is the execution of an agreement with CSXT or NSR 
that specifies the rates and other terms and conditions of service that 
such railroad will provide. Conrail will not be authorized to quote 
rates and other terms and conditions of service, just as it is not 
authorized to do so in the North Jersey Shared Asset Area.
    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: August 18, 2006.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. E6-14034 Filed 8-24-06; 8:45 am]
BILLING CODE 4915-01-P