Bill Would Open Rail Competition

Federal legislation requiring the Surface Transportation Board to increase its emphasis on ensuring competition between rail carriers was introduced last week by four senators.

The proposal would also require railroads to offer competitive rates on bottleneck rail segments and make it easier for competitive rail carriers to access terminal switching areas.

Joining Sen. Byron Dorgan (D-N.D.) in sponsoring the legislation were fellow Democrat Jay Rockefeller of West Virginia and Republicans Conrad Burns of Montana and Pat Roberts of Kansas.

Edward R. Hamberger, president of the Association of American Railroads, said the proposal “would create a tidal wave of problems.”

“Rate regulation might mean lower rates in the short run, but, in the long run, it would deprive railroads of the money needed to fund capital improvements,” he said.