FR 2025-05137

Summary of the Document

The document details a notice from American Services Rail, LLC (ASR), a company that is not currently a carrier, announcing its intention to lease and operate a short section of a rail line in Mississippi. This line is presently operated by Chicago, Rock Island & Pacific Railroad, LLC (CRIP). ASR plans to act as a common carrier on this section and as a contract carrier on additional tracks. The notice also indicates that there are no conditions for interchange commitments, which are often agreements that could affect competitive practices. The transaction will not elevate ASR to a larger rail carrier classification, and its initiation date is set for April 9, 2025. Legal measures are in place to address any false or misleading information related to this transaction.

Significant Issues and Concerns

One of the main concerns is the complexity of legal language and references throughout the document. Terms like "exemption under 49 CFR 1150.31" and the use of docket numbers are not easily comprehensible to individuals lacking legal training. The document also suggests a possible overlap in operational authority involving another railroad company, C&J Railroad Company. This lack of clarity raises questions about control over the rail line, which remains unaddressed.

Additionally, the document does not disclose any financial specifics or agreements between ASR and Coahoma County. Such details are essential for ensuring there is no preferential treatment or unfair advantage gained in the transaction. Another point of possible confusion is the mention of "categorically excluded from environmental review," a term that may not be immediately clear to laypersons regarding its meaning or implications.

The document's references to various footnotes and prior docket decisions provide limited context, leaving the significance and relevance of these references open to interpretation.

Impact on the Public

For the general public, the direct impact of this document might seem minimal, as it involves operational changes to a specific rail line section. However, the movement of goods and the logistics involved in rail transportation indirectly affect regional economies and communities. Understanding who operates these lines can influence public perception of safety, reliability, and economic accountability.

Impact on Specific Stakeholders

Specific stakeholders, including businesses relying on rail freight services and communities around Swan Lake, Mississippi, where the rail line is located, might experience more immediate effects. Businesses that depend on effective and reliable rail services could see changes in service quality and operations depending on ASR's management. On the other hand, for local communities, any operational changes brought on by ASR could influence job opportunities and local economic activities.

Railroad employees, especially those associated with CRIP, might also experience changes in employment status or responsibilities due to this operator transition. Meanwhile, ASR as a company could benefit from expanded operational capabilities and a broader market reach if the transition proceeds smoothly. On the contrary, any legal or operational missteps might lead to challenges and potential revocations of the exemption, affecting its business prospects.

The Federal Register document outlines a notice of exemption for American Services Rail, LLC (ASR) to lease and operate a short segment of rail line. A primary financial reference in the document indicates ASR's certification regarding its projected annual revenues. Specifically, the document states that ASR's projected annual revenues from this transaction will not result in the creation of a Class II or Class I rail carrier and will not exceed $5 million.

This financial reference helps clarify the scale of the rail operations involved. In the rail industry, Class II and Class I refer to larger carriers based on revenue thresholds set by regulators. Since ASR's projected annual revenues will not exceed $5 million, this places ASR in a smaller scale of operations, reinforcing its status as a non-major carrier. This information is particularly relevant as it demonstrates ASR's compliance with federal requirements, ensuring that the transaction remains within the bounds of small-scale rail operations, avoiding obligations and regulations applied to larger rail carriers.

The document mentions that ASR's agreement with Coahoma County does not include an interchange commitment, which typically involves financial obligations between connecting carriers. The lack of such commitments indicates that ASR's financial structure for this particular operation might be straightforward, potentially simplifying its financial and operational obligations.

Additionally, the document highlights some potential issues regarding operational control, notably with an overlap of authority involving the C&J Railroad Company. While financial details of the ASR lease agreement are not disclosed, such ambiguities in control could have financial implications, particularly if disputes arise over which entity should collect revenue from operations or manage costs.

Lastly, the document does not provide specific financial terms of the agreement between ASR and the County. This absence might be viewed as a lack of transparency regarding whether any preferential financial terms are in place. Such information could help stakeholders assess the financial fairness and implications of the lease agreement, especially considering that public entities are involved.

In conclusion, the financial references in this Federal Register document primarily relate to ASR's projected revenues and its operational scale. They provide a context for understanding ASR's positioning as a small-scale rail operator within this exemption process, while also underscoring the importance of transparent financial agreements in public-private rail logistics arrangements.