WASHINGTON — Companies involved in proposed freight rail mergers must also submit plans with the government during federal review of such deals to ensure safe operations, according to regulations approved by the Bush administration Monday.
A wire service reports that the new rule stemmed from safety lapses, some serious, during large-scale industry consolidation in the mid-1990s, the Federal Railroad Administration said. Two of those deals created the Burlington Northern Santa Fe Railway and bolstered Union Pacific Corp.
During subsequent deals, federal rail regulators and the Surface Transportation Board, the agency that evaluates the competitive impact of proposed rail mergers, agreed to obtain safety plans as a condition of review.
The rules made final on Monday make that a formal requirement to be overseen by the FRA.
“The adoption of these new rules is a clear recognition of the value the administration places on the safety of the nation’s rail network and the effects consolidation can have on the industry,” said FRA Administrator Allan Rutter.