03.22.07

Cantwell-Backed Bill Would Improve Rail Competition, Service for Washington Farmers

Would encourage fairer, more frequent service on rural routes that farmers, forest products companies, and small manufacturers depend on

WASHINGTON, DC - Wednesday afternoon, U.S. Senator Maria Cantwell (D-WA) joined Senator Jay Rockefeller (D-WV) in introducing bipartisan legislation to address poor service by railroads operating in markets with a lack of competition. In central and eastern Washington, many farmers, forest products companies, and small manufacturers depend on rail to ship their products. Many of these communities are served by only one railroad, which can set rates and schedules as they choose, and are under no obligation to get an adequate number of rail cars to farmers and producers in a timely manner.

"Unreliable, infrequent service and a lack of available rail cars can cause big problems for farmers who depend on rail to get wheat, potatoes, and other crops from the farm to the market," said Cantwell. "Improving rail competition where one railroad is dominant will lead to better prices and rail service for shippers of agriculture and forest product across our state. Helping our farmers move crops faster and more cost-effectively will get more Washington products to more markets and improve the local economy in our state's many agricultural communities."

"The Rail Competition Act will provide a stable source of transportation to all segments of the wheat industry as well as all industry," said Jerry Snyder, National Legislative Chairman of the Washington Association of Wheat Growers. "Many areas in our Northwest are held captive by one large railroad that will provide service only when necessary. This puts an extra burden on other forms of transportation. By allowing competition bidding for short line haulers on rail, this will alleviate the pressure our roads already bare. There are many small communities that relied on the rail for transportation of goods and services that no longer get that service. This bill may alleviate some of those problems and promote growth in our rural communities again."

Among other things, the Railroad Competition and Service Improvement Act directs the Surface Transportation Board (STB)—an independent federal agency with jurisdiction over rail issues—to:

  • Require, at the request of a rail customer, that a rail carrier establish a rate for transportation and provide service between any two points on the carrier's system
  • Allow a governor to petition to have all or part of a state designated as an area of inadequate rail competition; the STB would then have to come up with a remedy in 60 days
  • Streamline its process for determining whether or not rail rates are fair—known as a rate-case; the current rate-case system is prohibitively time-consuming and expensive
  • Provide greater information to the public on rail service complaints and the resolution of these complaints
  • Award damages to rail customers for lack of timely delivery of a shipment
  • Begin an investigation of unreasonable rail practices and, under certain circumstances, suspend those practices
  • Ensure that the transfer of rail assets will not hurt local competition
  • Approve agreements by which one rail carrier can operate its rail cars on another rail carrier's track if it is in the public interest

The legislation would also create an Office of Rail Customer Advocacy within the U.S. Department of Transportation to handle rail customer complaints. The legislation does not regulate any rail activity that is not currently regulated.

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