B.C.D. 02-35 MAY 1 3 2002

Employer Status Determination

RailAmerica Intermodal Services

This is the decision ofthe Railroad Retirement Board regarding the status of

RailAmerica Intennodal Services (R1S) as an employer under the Railroad 

Retirement and Railroad Unemployment Insurance Acts.

RIS was an inactive corporation prior to beginning operations September 1, 2000.

It is wholly-owned by RailAmerica Transportation Corporation which, in turn, is a

wholly-owned subsidiary of RailAmerica, Inc1. RIS operates the intermodal ramp

in East Peoria, Illinois, for the Toledo, Peoria & Western Railway Corporation, a

covered employer under the Acts (B.A. No. 2346) and a wholly-owned subsidiary

of RailAmerica, Inc.2 RIS operates machinery that lifts trailers and containers on

and offintermodal rail cars; operates the jimmies that move the containers and

trailers to and from parking places; and processes the paperwork for the acceptance 

and return ofthe containers and trailers.

Section 1(a)(1) ofthe Railroad Retirement Act (45 U.S.C. § 231(a)(1)), insofar as

relevant here, defines a covered employer as:

(i) any carrier by railroad subject to the jurisdiction ofthe

Surface Transportation Board under Part A ofsubtitle IV oftitle 49,

United States Code;

(ii) any company which is directly or indirectly owned or

controlled by, or under common control with, one or more employers

as defined in paragraph (i) ofthis subdivision, and which operates any 

equipment or facility or performs any service (except trucking service,

casual service, and the casual operation of equipment or facilities) in

connection with the transportation of passengers or property by

railroad * * *.

Sections 1(a) and 1(b) ofthe Railroad Unemployment Insurance Act (45 U.S.C. §§

351(a) and (b)) contain substantially similar definitions, as does section 3231 ofthe

Railroad Retirement Tax Act (26 U.S.C. § 3231).

1 See page 448 ofMoody's Transportation Manual, 2000.

2 See page 448 ofMoody's Transportation Manual, 2000.

BA# 9356
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RailAmerica Intermodal Services

R1S clearly is not a carrier by rail. However, it is under common ownership with 

the Toledo, Peoria, a covered employer under the Acts, since both companies are

direct or indirect subsidiaries ofRailAmerica, Inc. Accordingly, RIS would be a

covered employer under section l(a)(l)(ii) ofthe RRA ifit provides a service in

connection with railroad transportation within the meaning ofthat section.

The evidence ofrecord establishes that RIS provides its services directly in support

ofthe railroad carrier service provided by the Toledo, Peoria & Western Railway

Corporation. Based on the evidence of record, we find that RIS is providing a

service in connection with railroad transportation.

This case is distinguishable from the factual situation addressed in the Board’s

decision in B.C.D. 96-82 with respect to CSX Intermodal, Inc. (CSXI) wherein

CSXI was found not to be performing a service in connection with railroad

transportation. CSXI was an intermodal marketing company which also operated a

motor carrier operation and, through subsidiaries, operated intermodal terminals. It

provided services with respect to freight shipped in containers or trailers that could

be stacked on rail cars. It provided a door-to-door delivery service under a single 

bill oflading usually by a combination oftruck-rail-truck transportation and, in 

some cases, by barge. It arranged for the pick-up of a shipper’s containers or

trailers, either using its own truck owner-operators or through an independent

drayage firm; delivered the containers or trailers to one ofits intermodal terminals 

and placed them on flat cars ofthe carrier that services that terminal for line-haul 

to another intermodal terminal at which point the trailers or containers are removed

from the flat cars and are delivered to their ultimate destination either by CSXI

owner- operators or independent drayage firms.

In deciding CSXI, the Board examined four factors: 1) the physical relation ofthe

affiliate’s operations to the rail operations; 2) the history and origin ofthe affiliate;

3) for whose benefit the affiliate’s services are performed; and 4) the amount ofthe

affiliate’s business with the public. In the analysis ofthese factors, the instant case

is distinguishable from CSXI. 1) The operations ofRIS are performed at an

intermodal yard where it unloads rail cars ofthe Toledo, Peoria & Western

Railway. 2) RIS began operations in September 2000 to provide services to its rail

affiliate. 3) The services performed by RIS are exclusively for the benefit ofthe

Toledo, Peoria & Western Railway. The fourth factor has no bearing on this case.
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RailAmerica Intermodal Services

Based on the above, it is determined that RIS is an employer within the meaning of

section l(a)(l)(ii) ofthe Railroad Retirement Act (45 U.S.C. § 231(a)(1)(h)) and

the corresponding provision ofthe Railroad Unemployment Insurance Act as of

September 1, 2000, the date as of which it commenced operations.

V.M. Speakman, Jr:

erome F. Kever