[Federal Register Volume 74, Number 19 (Friday, January 30, 2009)]
[Notices]
[Pages 5726-5727]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-1843]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 35214]


Shawnee Terminal Railroad Co.--Corporate Family Exemption--
Alabama Railroad Co., and Alabama & Florida Railway Co., Inc

    Shawnee Terminal Railroad Co. (STR), Alabama Railroad Co. (ALAB), 
and Alabama & Florida Railway Co., Inc. (A&F), have jointly filed a 
verified notice of exemption under 49 CFR 1180.2(d)(3) for a 
transaction within a corporate family. The transaction involves the 
consolidation of ALAB, A&F, and STR, with STR as the surviving 
corporate entity. Under an agreement and plan of consolidation,

[[Page 5727]]

STR will own all of the assets of ALAB and A&F, and STR will be 
responsible for all debts, liabilities, and obligations of ALAB and 
A&F.
    The transaction is expected to be consummated on or after February 
15, 2009 (30 days after the exemption was filed).
    STR, ALAB, and A&F are affiliated Class III rail carriers, all of 
which are controlled by noncarrier holding company, Pioneer Railcorp 
(Pioneer). STR operates approximately 2.5 miles of rail line in 
Illinois. ALAB operates approximately 60 miles of rail line in Alabama. 
A&F operates approximately 43 miles of rail line in Alabama.
    The purpose of the transaction is to simplify Pioneer's corporate 
structure and reduce overhead costs and duplication by eliminating two 
corporations while retaining the same assets to serve customers. The 
transaction will also streamline accounting functions within the 
Pioneer corporate family. Although ALAB and A&F will cease to exist as 
separate corporate entities, STR will operate the respective rail 
properties under the trade name the Alabama Railroad, while retaining 
the ALAB and A&F reporting marks assigned by the Association of 
American Railroads.
    This is a transaction within a corporate family of the type 
exempted from prior review and approval under 49 CFR 1180.2(d)(3). The 
parties state that the transaction will not result in adverse changes 
in service levels, significant operational changes, or changes in the 
competitive balance with carriers outside the Pioneer corporate family.
    Under 49 U.S.C. 10502(g), the Board may not use its exemption 
authority to relieve a rail carrier of its statutory obligation to 
protect the interests of is employees. Section 11326(c), however, does 
not provide for labor protection for transactions under sections 11324 
and 11325 that involve only Class III rail carriers. Accordingly, the 
Board may not impose labor protective conditions here, because all of 
the carriers involved are Class III rail carriers.
    If the notice contains false or misleading information, the 
exemption is void ab initio. Petitions to revoke the exemption under 49 
U.S.C. 10502(d) may be filed at any time. The filing of a petition to 
revoke will not automatically stay the transaction. Petitions for stay 
will be due no later than February 6, 2009 (at least 7 days before the 
effective date of the exemption).
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 35214, must be filed with the Surface Transportation 
Board, 395 E Street, SW., Washington, DC 20423-0001. In addition, one 
copy of each pleading must be served on applicants' representatives, 
Robert A. Wimbish, 2401 Pennsylvania Ave., NW., Suite 300, Washington, 
DC 20037, and Daniel A. LaKemper, 1318 S. Johanson Road, Peoria, IL 
61607.
    Board decisions and notices are available on our Web site at http://www.stb.dot.gov.

    Decided: January 22, 2009.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Jeffrey Herzig,
Clearance Clerk.
 [FR Doc. E9-1843 Filed 1-29-09; 8:45 am]
BILLING CODE 4915-01-P