CN: Ocean Carriers And Terminals Urge STB To Ok Massena

Eight Major Shipping Lines and PANYNJ Terminal Operators Request STB to Reconsider the Competition Condition Imposed on the Massena Sale.

23.June, Washington DC – American Container Lines (ACL), Hapag-Lloyd, Evergreen Shipping, CMA-CGM, Maersk shipping lines, and Holt Logistics, Maher Terminals, General Container Terminals (GCT) port operators sent Letters of Support for the CN/CSX Massena Lines sale to proceed, without the approval condition imposed by the STB in its 06.April Decision of Conditional Approval. The letters urge that the Board reconsider the condition for approval it placed on CN’s acquisition of the Massena lines from CSX, requiring the parties to propose a modification or elimination of Section 5.14(b) in the parties’ executed Purchase and Sale Agreement.

All of the letters were composed as follows, or used very similar language:

Dear Ms. Brown,

We are writing today in support of the Bessemer and Lake Erie Railroad Company’s (“CN”) request for partial reconsideration of Decision No. 4, served on April 6, 2020 to the Surface Transportation Board (STB). As a customer using the new joint-line CN-CSX service between New York/New Jersey/Philadelphia and Canada announced in August 2019, we respectfully ask the Board to approve this request so the transaction can move forward.

We were excited about the STB’s approval of the Transaction on April 6. The new interline CN-CSX intermodal service has created an opportunity to move containers over the Massena Lines to Canada. We understand after the Transaction, the interchange between CN and CSX on the Massena Lines will move from Huntingdon, QC to Woodard, NY with an opportunity to improve transit times over the Massena Lines by 24 hours. We are concerned that these anticipated benefits will not be achieved if the Transaction is not able to move forward.

We respectfully ask the Board to approve this partial reconsideration request. We look forward to working with B&LE/CN and CSX to grow intermodal traffic moving by rail and thus remove trucks moving over highways. Thank you for your time and consideration.

Respectfully,

(Signed)