(The following story by Sean Wood appeared on the Fort Worth Star-Telegram website on February 18.)
FORT WORTH, Texas — Fort Worth-based Burlington Northern Santa Fe Corp. isn’t the only rail company under Justice Department scrutiny.
Union Pacific has also received a civil investigative demand from the antitrust division of the Justice Department.
“It is seeking information about pricing activities for coal out of the southern Powder River Basin” in Wyoming, said Kathryn Blackwell, general director of corporate communications for UP. She said the railroad will cooperate fully.
In 2004, UP hauled 250 million tons of coal, and 177 million of those came from the Powder River Basin.
BNSF notified the public in its annual report that it had received an investigative demand. Chief Executive Matthew Rose told The Associated Press on Wednesday that the company is cooperating and that it hasn’t done anything wrong.
Jason Seidl, an analyst with Avondale Partners in Philadelphia, said pricing questions are nothing new. But those disputes are usually handled by the Surface Transportation Board.
“The rails have continuously battled with captive shippers over the years,” Seidl said. “It doesn’t surprise me that another one of these has popped up.”
Union Pacific Corp.: UNP, $60.62, up $1.01
Burlington Northern Santa Fe Corp.: BNI, $47.94, up $0.26