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STB Finalizes BNSF Access Terms for Lake Charles Rail Corridor

The Surface Transportation Board has finalized compensation terms allowing BNSF Railway to use the Rosebluff Lead in Louisiana, a move intended to preserve competitive rail options for local shippers.

Jules Pennington

July 28, 20262 min read

Rail logistics infrastructure - illustration, Jake Team LLC
Rail logistics infrastructure - illustration, Jake Team LLC

The Surface Transportation Board finalized access terms on July 21 that allow BNSF Railway to utilize the Rosebluff Lead in the Lake Charles area of Louisiana. The decision establishes a compensation framework for BNSF to pay Canadian Pacific Kansas City and Union Pacific for trackage rights on the line.

The board stated the move reaffirms its commitment to preserving competitive rail options for local shippers and ensuring multiple carriers can serve the region efficiently. The Lake Charles area includes Westlake, West Lake Charles, and Lake Charles.

This proceeding is one of 13 outstanding cases the STB identified earlier this year as part of its efforts to promote transparency and accountability. The current case stems from conditions imposed on the 1996 merger of Union Pacific and Southern Pacific.

In 2016, the board granted BNSF terminal trackage rights over the Rosebluff Lead, a single track approximately nine miles long jointly owned by KCS and UP. The board found these rights necessary to effectuate merger conditions and maintain access to multiple competitive carriers. At that time, the board directed BNSF, KCS, and UP to jointly develop conditions governing the use of the lead.

BNSF had sought direct access in 2013 after serving shippers via reciprocal switching for nearly two decades. In 2020, the board established conditions for BNSF to directly serve a LyondellBasell facility and set a procedure for compensation for all BNSF use of the Rosebluff Lead.

Under the finalized terms, BNSF must pay KCS for trackage rights use of the Rosebluff Lead. Except for direct service to the LyondellBasell facility, BNSF must pay UP the previously prescribed fee for trackage rights use of the lead.

The board noted it received extensive briefing and analysis, held a technical conference, and required supplemental data before reaching this decision. The agency said the decision establishes a clear, durable compensation framework and strengthens the foundation for continued competitive rail service and infrastructure investment in the region.

Details regarding the specific monetary amounts of the compensation or the timeline for implementation are not yet clear.

BNSF Railway employs about 3,100 people in Fort Worth, according to local government records.

Source: Railway Age.

Sources

https://www.railwayage.com/regulatory/stb-case-backlog-clear-out-continues-with-bnsf-lake-charles-access-terms-finalization/

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Jules Pennington

Jules Pennington reports on local business, new openings, and economic development in Fort Worth.

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