Harbor Commission Votes to Replace Pacific Harbor Line With Union Pacific/BNSF Subsidiary

But The Story Is Far From Over

Pacific Harbor Line has provided short line rail services to the ports of LA and Long Beach since 1998, but on Oct. 6, with only the briefest discussion, the LA Harbor Commission voted 3-0 to sign a long-term contract with a firm, ABL, that has no comparable experience and is wholly owned by Burlington Northern Santa Fe Railway (BNSF) and Union Pacific, the two long-haul rail lines that serve the port.

Operational dysfunction caused by the competing interests of these same long-haul lines and their predecessors was the reason that the ports decided in the 1990s that an independent entity was needed to operate the short-haul rail service at the ports. In its protest letter PHL’s lawyer elaborated:

In the 1980’s and 1990’s, the Ports invested more than $370 million to acquire rail infrastructure and established a “single independent third-party operator” because competing Class I railroads could not fairly control dispatching, switching, capacity, and access.

It’s unclear if the ports ever reconsidered this reasoning. Rather they seem to have ignored it. And PHL charges that it was the direct result of BNSF and UP lobbying to shape the request for proposal process to favor ABL, in effect ignoring the lessons of the 1990s, and the resulting decision of the ports.

This is just one of multiple procedural irregularities — if not violations of law — outlined by PHL’s attorney Brandon Young of Manatt, Phelps & Phillips. But the commissioners seemed uninterested in even considering them, except for Commissioner Lee Williams, who made a motion to postpone the decision “until I’ve had proper time to review all of the items in the protest and also in the selection process.” His motion died for lack of a second, and he abstained from the final decision.

The story is far from over, however. The decision has been appealed to the LA City Council, where it’s been assigned to the Trade, Travel and Tourism Committee, which has yet to schedule any action. It also needs approval by the Long Beach City Council, which canceled its scheduled Oct. 26 consideration. There’s also an appeal to the Surface Transportation Board, which also awaits a schedule.

Random Lengths will publish a more detailed story, with updates, after the election.