USA Law and Practice Contributed by: John D. O’Neill, Jr., David B. Horner, Andrej Micovic and Ryan Pedraza, Hunton Andrews Kurth LLP
and FRA oversight. In practice, cross-border rail trans - portation is generally facilitated through co-ordination among rail carriers operating within each jurisdiction rather than through unrestricted foreign operation of domestic rail services. 3.4 Duration, Transfer and Revocation The duration and transferability of operating authori - sations depend on the nature of the authorisation and the regulatory framework under which it was issued. Motor carrier operating authority remains effective so long as the carrier continues to satisfy applicable regulatory requirements, including insurance, registra - tion and safety obligations. Rail operating authority similarly may continue indefinitely, subject to ongoing compliance with regulatory requirements and appli - cable approvals for significant operational changes. In mergers and acquisitions, transportation-related licences and operating authorities are not always automatically transferable. Regulatory approvals, noti - fications or amendments may be required depending on the nature of the transaction and the applicable regulatory regime. Rail transactions in particular may require review by the STB where control of a rail carrier is being transferred. Operating authority may be suspended, restricted or revoked for failure to comply with applicable laws and regulations. Common grounds include safety viola - tions, failure to maintain required insurance cover - age, fraudulent conduct, repeated regulatory non- compliance or failure to satisfy financial responsibility requirements. Concession rights may also be termi - nated or subject to default remedies under the terms of the applicable concession agreement. In the P3 context, concession agreements provide detailed pro - visions addressing default, cure rights, lender step-in rights and termination compensation.
jurisdiction. Most public roads, highways and bridges are owned by state departments of transportation, toll authorities, transportation commissions or local gov - ernments. Interstate highways are primarily owned and maintained by state transportation agencies, although federal funding often supports their devel - opment and improvement. Road P3 projects do not involve the transfer of under - lying ownership of the infrastructure. Instead, the pub - lic authority retains ownership while granting a private concessionaire the right to design, construct, finance, operate and maintain the asset pursuant to a long- term concession agreement. Upon expiration or ter - mination of the concession, operational responsibility reverts to the public authority. The rail sector presents a different ownership model. Unlike many jurisdictions, most freight rail infrastruc - ture in the United States is privately owned. Major freight railroads own and operate extensive rail net - works and control both infrastructure and transpor - tation services. Passenger rail services frequently operate over infrastructure owned by freight railroads, although certain passenger rail corridors and transit systems are publicly owned. 4.2 Separation of Infrastructure and Operations Unlike many European jurisdictions, the United States does not require structural separation between rail infrastructure ownership and train operations. In the freight rail sector, the major Class I railroads own, maintain and operate their networks. Infrastruc - ture ownership and transportation services are there - fore vertically integrated. This model has historically been viewed as supporting investment in rail infra - structure and operational efficiency, although it occa - sionally gives rise to disputes regarding access and competition. Passenger rail services frequently operate under dif - ferent arrangements. Amtrak, commuter rail operators and public transit agencies often utilise infrastructure owned by freight railroads pursuant to negotiated access agreements. Certain publicly owned passen -
4. Infrastructure Ownership and Access 4.1 Ownership Models
Ownership and management of transportation infra - structure in the United States vary by asset type and
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