Avory B. Beggs is seeking federal authorization to acquire indirect control of two Class III railroads through a proposed ownership change at Midwest & Bluegrass Rail.
Beggs, a noncarrier, filed a verified notice of exemption with the Surface Transportation Board covering her proposed acquisition of a controlling interest in Midwest & Bluegrass Rail, also a noncarrier. Midwest & Bluegrass Rail manages rail carriers through agreements with their owners and currently controls TransKentucky Transportation Railroad and Youngstown & Southeastern Railroad through common management, according to the filing.
TransKentucky Transportation Railroad owns and operates rail property in Kentucky. Youngstown & Southeastern Railroad owns and operates rail property in Ohio and Pennsylvania.
Beggs told federal regulators she does not currently control any rail carriers. She is currently one of three minority owners of Midwest & Bluegrass Rail. Another co-owner, Dustin Shaver, has agreed to sell his interest in the company to Beggs, according to the filing.
As a result, Beggs would acquire a controlling ownership interest in Midwest & Bluegrass Rail and, through that company’s management role, indirect control over the two short-line railroads.
Beggs said the two railroads do not connect, the transaction is not part of a series of anticipated transactions that would connect them, and the deal does not involve a Class I railroad. Because of those factors, the transaction qualifies for an exemption from prior approval requirements.
The earliest the transaction may be completed is July 26. Petitions to stay the exemption are due by July 17, while petitions to revoke may be filed at any time.
Because the transaction involves only Class III rail carriers, the board said federal law does not allow it to impose labor protective conditions. Beggs said the action is categorically excluded from environmental review and historic preservation reporting requirements.
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