[Federal Register Volume 59, Number 11 (Tuesday, January 18, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-1106]
[[Page Unknown]]
[Federal Register: January 18, 1994]
=======================================================================
-----------------------------------------------------------------------
Interstate Commerce Commission
[Finance Docket No. 32421]
RailAmerica, Inc.--Control Exemption--South Central Tennessee
Railroad Co.
RailAmerica, Inc. (RailAmerica) has filed a notice of exemption to
acquire control, through stock purchase, of South Central Tennessee
Railroad Company (SCTR), a class III rail carrier which operates over
approximately 50 miles of rail line in the vicinity 40 miles west of
Nashville, TN, extending from Colesburg Yard, TN (at milepost 2.9)
where it interchanges with CSX Transportation, to Hohenwald, TN (at
milepost 52.1).
RailAmerica, a noncarrier holding company, also controls Huron and
Eastern Railway, Inc. (HESR) and Saginaw Valley Railway Company
(SGVY).1 Under the terms of an agreement with Kyle Railways
(Kyle), a shortline railroad holding company, RailAmerica will purchase
100 percent of SCTR's stock, and, after consummation, RailAmerica will
be in control of three non-connecting class III rail carriers. The
proposed control transaction was scheduled for consummation on or after
December 31, 1993.
---------------------------------------------------------------------------
\1\The Commission exempted the common control of HESR and SGVY
in John H. Marino, Eric D. Gerst, and Mariner Corporation--Control
Exemption--Saginaw Valley Railway Company, Inc., Finance Docket No.
31196, (ICC served April 23, 1991). See also, RailAmerica, Inc.--
Corp. Family Trans. Ex.--Huron and Eastern Ry. and Saginaw Valley
Ry., Finance Docket No. 32068 (ICC served June 18, 1992).
---------------------------------------------------------------------------
RailAmerica indicates that: (1) The lines operated by SCTR do not
connect with any rail lines operated by HESR or SGVY, or its corporate
family; (2) the involved transaction is not a part of a series of
anticipated transactions that would connect the railroads with each
other or any railroad in their corporate family; and (3) the
transaction does not involve a class I carrier. The transaction is
therefore exempt from the prior approval requirements of 49 U.S.C.
11343. See 49 CFR 1180.2(d)(2). The purpose of the transaction is to
preserve rail service on a light density rail line. RailAmerica
anticipates that it will be able to attract more rail service to the
line than is presently being provided by offering lower costs, more
frequent service, and an increased car supply.
As a condition to the use of this exemption, any employees
adversely affected by the transaction will be protected by the
conditions set forth in New York Dock Ry.--Control--Brooklyn Eastern
Dist., 360 I.C.C. 60 (1979).2
---------------------------------------------------------------------------
\2\Although RailAmerica states that no employees will be
adversely affected by the transaction, it recognizes that the
Commission may not relieve a carrier of labor protection obligations
for section 11343 transactions. 49 U.S.C. 11347.
---------------------------------------------------------------------------
Petitions to revoke the exemption under 49 U.S.C. 10505(d) may be
filed at any time. The filing of a petition to revoke will not stay the
transaction. Pleadings must be filed with the Commission and served on:
Eric D. Gerst, General Counsel, 21 South Fifth Street, Suite 528,
Philadelphia, PA 19106.
Decided: January 11, 1994.
By the Commission, David M. Konschnik, Director, Office of
Proceedings.
Sidney L. Strickland, Jr.,
Secretary.
[FR Doc. 94-1106 Filed 1-14-94; 8:45 am]
BILLING CODE 7035-01-P
