WASHINGTON — The parties involved in the long-running dispute over Amtrak’s effort to launch Gulf Coast passenger service say they have reached an agreement, but at least initially are offering no details on the nature of that deal
In a joint statement Tuesday, Amtrak, CSX Transportation, Norfolk Southern, and the Alabama State Port Authority say they have “collectively reached an agreement to support passenger and freight service in the Gulf Coast Corridor. … Due to the confidential nature of the settlement agreement, the parties are not able to provide further comment on its terms at this time.”
The four parties asked the STB to hold in abeyance further proceedings involving the case, a request the board granted in a decision issued Tuesday afternoon, cancelling hearings set for Nov. 30 and Dec. 1, as well as a Dec. 7 conference to vote on a decision in the case.
The parties’ filing, available on the STB website, has details redacted but says it will take “several months” to complete the settlement.
“With the assistance of Board-sponsored mediators, the Parties have agreed upon a settlement that will — after several conditions are met in the coming weeks and months — completely resolve this dispute,” the filing says. “Some of these conditions are not entirely within the Parties’ control, however. Therefore, each Party has reserved its right to reinstate this proceeding in the event certain of those conditions are not met.”
The parties will provide the board with an update on the status of the agreement by June 30, 2023, if the agreement is not completed before then.
When the board announced its decision, STB Chairman Martin J. Oberman issued a statement saying the board “appreciates the successful efforts of Amtrak, CSX, NS, and the Port to settle this important case. I particularly want to acknowledge the significant progress that has been made in achieving a settlement under the new leadership of CSX and NS, which I expect brought a fresh constructive approach to resolving the matter.”
Noting that the board “has stated many times our strong preference for private parties to operate in good faith and to amicably resolve disputes on their own whenever possible to obviate the need for Board action,” Oberman said the settlement, by hastening the return of passenger operations on the route, “will result in a substantial public benefit” for residents and visitors to the region and have a positive impact on the economy.
“I look forward to the parties informing us of the specific infrastructure improvements that will be made to the rail network as a result of the settlement,” Oberman said.
Amtrak took the matter to the board in March 2021 [see “Amtrak asks STB to require CSX, NS to allow Gulf Coast service,” Trains News Wire, March 16, 2021]. This set off setting off a lengthy series of filings, as well as 11 days of hearings earlier this year, that have largely centered on the statutory requirement that freight railroads allow Amtrak service as long as it does not provide “unreasonable impairment” to freight operations. CSX and Norfolk Southern have argued throughout the case that the two daily round trips between New Orleans and Mobile, Ala., would, in fact, lead to such impairment — even while declining to publicly share how many trains use the line. Beyond that, the two sides have had sharply differing views of how much infrastructure work would be required to offset such impairment.
The sides have been engaged in mediation since June [see “STB grants Amtrak access …,” News Wire, June 11, 2022], but in October appeared to have reached an impasse in that effort and went back to the board. Once the board scheduled two final days of hearings for mid-November, however — and indicated it could vote on an outcome as soon as Dec. 7 — the parties sought additional mediation, leading to today’s announcement
The case has been viewed as having significance far beyond its route, as an STB ruling could set a precedent as Amtrak looks to expand corridor service elsewhere.
— Updated at 11:25 p.m. CST with additional information from filing with STB; revised and updated at 6:45 p.m. CST with STB decision and statement. Follow Trains News Wire for additional news and analysis as it becomes available.
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