Major Market Extension [Transportation] Law and Legal Definition

According to 49 CFR 1180.3 [Title 49 – Transportation; Subtitle B Other Regulations Relating to Transportation; Chapter X Surface Transportation Board, Department of Transportation; Subchapter B Rules of Practice; Part 1180 Railroad Acquisition, Control, Merger, Consolidation Project, Trackage Rights, and Lease Procedures; Subpart A General Acquisition Procedures], major market extension is “a transaction which may significantly increase competition by extending service into a new market, expanding service in a currently served market when another carrier concurrently contracts its service to that market as part of the same transaction, or providing significantly more efficient and effective competitive service to a market presently being served. Criteria which can be used to determine if a railroad is proposing to provide a more competitive service to a currently served area include: (1) Creating a shorter route; (2) providing enhanced service capabilities (speed is not the only factor); (3) entering an interchange or market generating more than 5,000 cars per year or 5 percent of applicant's traffic; (4) filing the application as a condition of relief to a pending proceeding; and (5) permitting a carrier to become more competitive (extending its length of haul).”