WASHINGTON — Norfolk Southern has urged the Surface Transportation Board to continue a case of regulatory housekeeping involving control of Virginia terminal railroad Norfolk & Portsmouth Belt Line.
Last month CSX told the STB that the Justice Department was probing its allegations about anticompetitive conduct involving NS and NPBL at a major Norfolk container terminal. CSX also asked the board to conduct a thorough review of competitive issues at the Norfolk International Terminal.
CSX contends that it should have direct access to the Virginia Port Authority’s Norfolk International Terminal via NPBL, which reaches the dockside terminal over NS trackage. CSX also alleges, among other things, that NS and NPBL set a switching rate that effectively prevents CSX from competing at NIT.
NS, in a filing on Friday, said there’s nothing unusual about the Justice Department taking a look at a case involving antitrust allegations. CSX initially brought suit against NS and NPBL in 2018, but a federal court dismissed CSX’s complaint because the railroad waited too long to bring its suit.
“This is not a surprising development. There are many reasons the Antitrust Division looks into claims that are being litigated, including a request by an interested party, like CSXT,” NS told the board. “But in its investigation, the Antitrust Division will see the same undisputed facts presented at the district court; facts which demonstrate (1) a general increase of traffic flowing through the NIT terminal and the Port of Virginia; (2) investment by the railroads, the Port and others all to the benefit of shippers and transportation providers along the Eastern U.S.; (3) NPBL’s disputed rate being true to the principles of cost-based (not market-based) uniform service provided for the benefit of its owners; and (4) as POV’s filing confirms and as the record in the antitrust case reflects, CSXT’s movement of containers through NIT and through POV has increased significantly during the exact time period in which CSXT claims anticompetitive actions by NS and NPBL.”
The 2018 court case led to the 2022 discovery that regulators had never approved Norfolk Southern’s control of the NPBL in 1982. The STB ordered NS to officially file for control of the 36-mile terminal switching line.
“CSXT continues to raise the specter of antitrust behavior. But the federal courts have already discounted this ghost story. And, just as the federal district and appeals court rejected CSXT’s claims, NS is confident that DOJ will reach a similar conclusion after a review of the facts,” NS told the STB.