By Justin Franz
MISSOULA, Mont. — A week after BNSF Railway announced it was reacquiring track now operated by Montana Rail Link, the question on many people’s minds is how long will it take for the regional railroad to become a fallen flag? Officials tell Railfan & Railroad, that’s hard to say at this point.
Like any railroad acquisition, BNSF and MRL will have to get approval from the U.S. Surface Transportation Board, the federal regulator that oversees railroads. But MRL officials said Friday that neither railroad would be going to the STB immediately and that they first wanted to have labor agreements in place with the various unions that represent many of the railroad’s 1,200 employees.
“Our priority right now is outreach to employees and working with labor unions on implementing agreements,” said a spokesperson for MRL’s owner, Washington Companies. “Once that has concluded, it is our intent to file with the U.S. Surface Transportation Board.”
The spokesperson did not offer a timeline for how long those negotiations would take. Last week, when BNSF and MRL shocked the railroad world with the news that the Class I was taking the regional railroad over, officials said that BNSF was “committed to retaining all union and non-union employees of MRL in their current jobs with similar pay, benefits, seniority, and other terms of employment.”
MRL was founded in 1987 when Montana industrialist Dennis Washington leased Burlington Northern’s secondary main line across the state and purchased a number of former Northern Pacific branch lines. The lease was expected to last 60 years, but this week MRL’s owners decided to end it early.
Because BNSF already owns most of MRL’s 937-mile system from Billings, Mont., to Sandpoint, Idaho, it’s unclear how long the STB’s review will take, but a spokesperson for the regulator said it will be thorough. Of particular interest will be ensuring that the takeover does not negatively impact rail competition in the region. BNSF already controls 59 percent of Montana’s rail network; with MRL back in the fold, it would control 84 percent of that network.
“This potential transaction would fall within the Board’s purview and it has broad regulatory authority to ensure an efficient and competitive rail system,” said STB spokesperson Michael Booth. “The Board can’t make a determination on what would be required until it sees an official filing from BNSF and/or MRL.”
