STB has decided that the CP acquisition of DM&E is major transaction

[Doublestack]

What an absolutely pathetic move on the part of STB.   Lets see, how would CP acquiring DM&E affect competition in rail transportation in Wall, SD - or elsewhere along the route?  It certainly doesn't allow CP to gain more market share in a market in which they already participate.  There's one RR from Winona, MN to Colony, WY today and there will be one after this transaction.  Seems there's nothing for the STB to decide.

I would suggest that BNSF and UP are far more behind this one than Mayo - given that they have something to lose in terms of a 3rd carrier busting up a bit of the monopoly they hold in the Powder River Basin.   If you read the BNSF 3rd Qtr earnings release, they tout the fact that coal revenues went up 13% year over year, while units moved remained the same.   When you have that kind of pricing power in spite of overall inflation at 2-3%, you're going to call in the political cards to keep a strangle hold on it.

[edbenton]

  All I want to know is WHO Mayo paid off for this one.  Since when is a a reginal RR with revenue under 250 million and a class 2 in size being bought out by a Class 1 a Major Transaction.  The STB's own rules state that any RR that as revenue under 250 million being bought by a class 1 is a minor Transaction.  That is per the Merer Rules laid down after the collaspe of the CN and BNSF merger.  But this is Washington DC we are talking we are talking about and money talks and Mayo has the cash to buy whoever they want like former Senators and Governors as lobbyists.

[beaulieu]

The Mayo has gotten the first of its wishes, the STB has ruled that the CP acquiring the DM&E will be considered a major transaction, eith all or at least most of what that entails.