B.C.D. 01-19

FEB 0 9 2001

EMPLOYER STATUS DETERMINATION

Harbor Belt Line Railroad (HBLR) (B.A. No. 4735)

This is the determination of the Railroad Retirement Board concerning the

continued status of Harbor Belt Line Railroad (HBLR) (B.A. No. 4735) as an

employer under the Railroad Retirement Act (45 U.S.C. §231 et sea.) (RRA) and the

Railroad Unemployment Insurance Act (45 U.S.C. § 351 et seep) (RUIA).

In Board Notice No. 98-10, HBLR was previously found to be a covered rail carrier

employer under the RRA and RUIA effective November 20, 1997, the date on which

it commenced operations.

In Surface Transportation Board (STB) Finance Docket Number AB-542X, decided

June 9, 1998, HBLR filed a verified notice of exemption to discontinue its switching

operations on tracks owned by the City of Los Angeles (the City) within the Port of

Los Angeles (POLA), Los Angeles, California. Additionally, in STB Finance Docket

No. 33411, service dated December 2, 1997, Pacific Harbor Lines, Inc. (PHL) (B.A.

No. 4783) filed a verified notice of exemption to acquire operating rights from the

City to provide switching services being discontinued by HBLR. According to the

STB decision in Docket No. AB-542X, upon commencement of services by PHL

HBLR would be replaced as the operator of the rail lines within the POLA and all

operations by HBLR would be discontinued. According to the STB decision, HBLR

stated that in 1994 the relevant parties determined that operations within the

POLA would be better handled by a neutral third party provider. According to the

STB decision, the increased prominence of intermodal unit trains and the emphasis

on containerized traffic over the last 10 years had changed the requirements for rail

services within the POLA. According to HBLR, its organization and focus were no

longer suitable for the kind of updated rail services required by the POLA, the

POLA’s tenants, and Union Pacific (UP) and Burlington Northern and Santa Fe 

(BNSF).

Information regarding HBLR was furnished by Mr. George M. Strum, Director of

Joint Facilities and Contracts for UP. According to Mr. Strum, employees of HBLR

were last compensated prior to February 15, 1998. Mr. Strum provided information

which show's that HBLR ceased operations on February 14, 1998. Mr. Strum stated

that on June 16, 1998, HBLR’s Board of Directors voted on a resolution to dissolve

HBLR effective July 12, 1998. Three of HBLR’s employees became employees for 

PHL after dissolution of HBLR, according to Mr. Strum.

Section 202.11 (20 CFR 202.11) of the Board’s regulations states that:

BA# 4735
Harbor Belt Line Railroad (HBLR) (B.A. No. 4735)

The employer status of any company or person shall terminate whenever

such company or person loses any of the characteristics essential to the

existence of an employer status.

Also, section 1(a)(1) of the RRA defines the term “employer” to include:

(i) any carrier by railroad subject to the jurisdiction of the Surface

Transportation Board under Part A of subtitle IV of Title 49 [45 U.S.C.

§ 23l(a)(l)(i)].

Section 1 of the RUIA contains the same definition.

The information summarized above indicates that, due to the cessation of

operations by HBLR and moreover, the dissolution adopted by its Board of

Directors, HBLR no longer possesses the characteristics of an operating railroad

company. The Board therefore finds that effective with the close of business on

February 14, 1998, the date on which HBLR ceased operation, the Harbor Belt Line

Railroad ceased being a covered employer under the Railroad Retirement Act and

the Railroad Unemployment Insurance Act.

V. M. Speakman, Jr.