Document: 479 U.S. 450 107 S.Ct. 787 93 L.Ed.2d 809 INTERSTATE COMMERCE COMMISSION, Petitioner,v.TEXAS et al. MISSOURI-KANSAS-TEXAS RAILROAD COMPANY, al., Petitioners, v. TEXAS Nos. 85-1222, 85-1267. Argued Dec. 10, 1986. Decided Jan. 20, 1987. Syllabus Since the 1930's, railroads, motor carriers, and freight forwarders have offered both trailer-on-flatcar (TOFC) container-on-flatcar (COFC) services, forms of mixed train truck transportation whereby loaded trailers or containers to be placed on are transported railroad flatcars then hauled by trucks highways. A provision Staggers Rail Act 1980, 49 U.S.C. § 10505(f), authorizes Interstate Commerce Commission (ICC) exempt from state regulation "transportation that is provided a rail carrier as part continuous intermodal movement." In 1981, ICC adopted exempting regulation, covering portions of, "Plan II TOFC/COFC service," which involves door-to-door service moves its own flatcars. 1982, petitioner companies petitioned Texas Railroad apply ICC's exemption intrastate traffic. The State granted partial portion but not Plan service. for review decision ICC, held Commission's assertion regulatory jurisdiction over was inconsistent with 1981 regulation. On order, Court Appeals reversed, holding movements at issue . carrier" within meaning 10505(f) rather 10521(b)(1), reserves such Held: grant authority under encompasses shipment entirely State. all elements equipment owned operated has jurisdiction, plain language unambiguously supports position. Although 10521(b)(1) can read support contrary result, correct, more natural, reading statute interstate carriers they subject jurisdiction. result would historical treatment "provided railroad," make authorize services in areas where it already been rejected. Moreover, special statutory determine proper interrelationship different modes interpretation Act. statement policy, Congress expressed interest allowing free competition, maximum extent possible, govern financial health industry. Pp. 455-461. 770 F.2d 452 (CA5 1985), reversed. STEVENS, J., delivered opinion unanimous Court. Richard G. Taranto, Washington, D.C., No. 85-1222. Michael E. Roper, Dallas, Tex., petitioners Fernando Rodriguez, Austin, respondents cases. Justice STEVENS 1 Trailer-on-flatcar (TOFC "piggyback") service, form transportation, enables transport trailer contents flatcar haul highway. goods need unloaded reloaded when move mode mode; remains container during entire journey. Various TOFC (COFC)1 public since 1930's.2 These cases concern Texas' what known long defined follows: 2 (All-Rail): 3 "Door-to-door performed railroad, open tariffs usually similar those truckers." See American Trucking Assns., Inc. Atchison, T. & S.F.R. Co., 387 397, 403, 87 1608, 1612, 18 847 (1967). 4 includes exemptions well regulate. enacted Act, 94 Stat. 1895, 10101 seq., 10505(f). It undisputed may an carrier. question presented whether Texas. 5 * regulation.3 covers service.4 separate case involving shipments, Fifth Circuit upheld specifically rejecting argument had no "rail-owned 'transportation carrier.' " 656 1115, 1120 (1981). 6 September 27, Missouri-Kansas-Texas Company, Missouri Pacific Southern Transportation Company (Railroads) (RCT) their App. 7-10. RCT took position retained regulate segment provides commission carrier, only conforms federal if determines State's proposed standards procedures consistent procedures.5 covered pre-rail post-ex-rail Id., 11-12. 7 Railroads 11501(c) RCT's full exemption. "incidental ex-rail over-the-road movements" contained regulation.6 sought order Circuit. intervened respondents. That court 10505(f)7 10521(b)(1).8 United States, (1985). distinguished supra, limited shipments some point journey crossed boundary. When purely intrastate, held, railroad-owned constitute reason expressly reserved We petitions certiorari Railroads, 476 1157, 106 2274, 90 717 (1986). persuaded erred. 8 power these coextensive regulate, carriers.9 therefore focus our trucking activities. railroads interested this proceeding engaged commerce, carriers.10 All Thus, position.11 9 true, course, text because possible regard "motor movement. believe, however, certainly ICC.12 10 urged encounters three serious difficulties. First, agency's railroad." Ex parte 230, Substituted Service-Charges Practices For-Hire Carriers Freight Forwarders (Piggyback Service), 322 I.C.C. 301, 304-305, 309-312 (1964), stated: 11 "Under plan II, holds out provide complete single bill lading. Neither shipper nor consignee intervenes any way overall activities does anything beyond tendering origin shipper's loading dock." 311. 12 recognized distinctive element use offer pickup delivery via highway, identity offering service: 13 "[A]ll three—rail forwarder—are even today providing, through piggyback, physical characteristics substantially similar. Any one delivery, movement between premises yard, line-haul rail. tariff; trucker I, encouraged forwarder plans III IV tariffs." 330. 14 none treated either hybrid, Presumably, enacting 10505, aware practice regulating "rail carriers" 15 Second, section term "intrastate must refer If refers portion, preserve shipment. But acknowledges power.13 Alternatively, every segment, regarded movement, retain Again, claim authority. think clear square words aspects accept hold II.14 16 Third, Act.15 response differing applying industry excessive governmental authorities contributed difficulties major railroads.16 industry.17 importance policy confirmed fact general applicable types generally prescribes impartial competing introduced exception providing endorsing competition shall prevail impact carriers.18 Even restricts 10505 were doubt, priorities lead us agree view ambiguity should resolved favor than 17 judgment so ordered. include COFC Pet. Cert. p. I; 85-1267, i. container, unlike trailer, cannot itself highway tractor rig; first suitable trailer. For purposes opinion, there relevant differences "TOFC inherently bimodal basic characteristic combination inherent advantages transportation: railroad's ability efficient huge volumes great distances high speed; carrier's door-to-door, necessary job- farm-site, delivery." 329 (1964). id., 305-309 (describing growth service). CFR 1039.13 also Improvement Regulation, 364 731, aff'd, 1115 1981). "[r]ailroad (1986) (emphasis added). plans, company, forwarder, shipper. applies 11501. At time issued case, provisional certification longer rates, classification, rules, practices denied 388 (Sub-No. 31), Intrastate Rate Authority—Texas, I.C.C.2d 26 (1984), Comm'n 246 U.S.App.D.C. 352, 765 221 39627, Petition Under Review Order Texas, decided 19, 1984 (Service Date 23, 1984); 39704, Road-Rail Inc., Apr. 11, 13, 1984). Section provides: "The exercise "(b) This subtitle not— "(1) except sections 10922(c)(2), 10935, 11501(e) title, affect carrier." Sections 10922, issue. found refusal violated binding upon Commission, authorized "to establish rate, rule, pertaining same manner classifications, movements." pp. 21a-22a. thrust lacks totally [sic ] carriers. Without maintains, could constrained agree." 452, 453 1985) quotation reveals incompleteness Appeals' reasoning. carriers," movements. conclusion necessarily extend other operate across boundaries. fact, consistently exercised interstate, n. 14, infra. Nevertheless, did err underlying coincides recognizes scope impose although effort legal trying rates movements, asserted power. §§ 10501 assert wholly carriers; 7, supra. Our certified Because now independently places intra-Texas ICC: "Any due denial subsection deemed [§ seq.]." 11501(b)(4)(B). And course why plainly segment. least implicit Circuit's 1120: "[R]ail-owned Had intended limit easily done using language. Instead, chose broad 'transportation-that-is-provided-by-a-rail-carrier' presumably knowledge previously 'transportation' passengers property vehicle." (Citations omitted; footnotes omitted). based narrowly traffic commerce "potential mischief" travel focused hypothetical example small minimal city extensive convey city, F.2d, 454-455. scenario occur, it, speculative potential mischief exist. contrast, whose segments Guide Piggyback Routes, Distribution 190, 196 (July 1982) (route diagrams 9, "[W]e arguments arguable inference nonspecific language, limiting adopt rules which, essentially, reflect light current facts several respect important new development." U.S., 410, S.Ct., 1615. impermissibly limits implement national evolving area transportation. H.R.Rep. 96-1035, 38, 61, 128-130 (1980); H.R.Conf. 96-1430, 79 (1980), U.S.Code Cong. Admin.News 3978, 3983, 4006, 4072-4074, 4110. 10101a "establishes specific guide duties industry." H.R.Conf.Rep. 80, 4111. provides, part: "10101a. "In industry, States Government— allow, demand reasonable rail; "(4) ensure development continuation sound system effective among modes, meet needs defense; "(5) foster economic conditions coordination modes; "(7) reduce barriers entry into exit "(a) Except principles title govern, development, coordination, preservation meets including Postal Service defense, Government ."

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