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UPDATE: STB Approves MRL Deal, BNSF to Takeover by Year’s End

On Wednesday, the U.S. Surface Transportation Board announced that BNSF’s takeover of MRL could happen as early as April 7. MRL’s Gas Local is seen along the Clark Fork River in the spring of 2018. Photo by Justin Franz. 

UPDATE: STB Approves MRL Deal, BNSF to Takeover by Year’s End

Updated: March 8, 11:00 a.m. MST

By Justin Franz

Railfans interested in seeing Montana Rail Link before it is taken over by BNSF Railway will likely have one more summer to capture the regional road’s iconic blue, black and white locomotives. 

On Tuesday, the U.S. Surface Transportation Board announced it would approve Montana Rail Link’s request for an exemption from the normal discontinuance of service review, thus authorizing BNSF Railway’s expedited takeover of the regional railroad. 

Because MRL operates on trackage that it leases from BNSF, the regional railroad argued that a detailed review of the transaction was unnecessary and that neither customers nor employees would be negatively impacted. The STB agreed and said its exemption decision was effective April 7, meaning the takeover could occur anytime after that. 

A few hours later, BNSF and MRL officials said the process of bringing the regional road’s tracks back into the Class I system would begin soon and that an official takeover would likely happen before the end of the year. 

“Our team is eager and ready for the next chapter in MRL’s history. We have created a strong culture at MRL and BNSF shares our values, “said Joe Racicot, president of MRL. “Our shared commitment to safety and customer service are bedrock values within both companies that will never change.” 

BNSF officials have said MRL will be known as the “MRL Subdivision” within the Montana Division, “in recognition of the shared heritage of BNSF and MRL,” said BNSF CEO Katie Farmer. What exactly that will look like in operational practice is unknown. MRL is currently made up of five main line subdivisions stretching across all of southern Montana.

In January 2022, MRL announced that it was terminating the long-term lease of its main line across Montana and Idaho and that BNSF would soon resume operations. MRL’s parent company, Washington Corp., leased the former Northern Pacific from Huntley, Mont., to Sandpoint, Idaho, in 1987 for 60 years. But MRL and BNSF mutually decided to end that agreement after just 35 years. Since the announcement, MRL and BNSF have been working with labor leaders to forge implementation agreements with the regional road’s union employees. BNSF has vowed to hire all MRL employees. 

In its decision on Tuesday, the STB signaled that it had agreed with MRL and BNSF that rail service through southern Montana would not be negatively impacted by the takeover. It also noted that none of MRL’s approximately 125 customers filed an objection to the plan. The only entities that did were a private individual and a private rail operator, who worried that their rail cars would no longer be able to operate on MRL (In years past, MRL hosted a handful of private cars during the summer, although it has been a number of years since that happened). 

Farmer said she was excited about the future of MRL under the BNSF banner. 

“We are excited to welcome the MRL team,” she said. “They know this railroad better than anyone and we’re proud to have them join BNSF… Joining these two great railroads — both with strong ties and rich traditions — opens new opportunities and broader horizons for our collective teams, our families and the customers and communities we’ve worked together to serve for many years.”

Read the full U.S. Surface Transportation Board decision here.

This story will be updated. 

This article was posted on: March 8, 2023