NITL Asks Surface Transportation Board For New Rail Shipping Standards
The National Industrial Transportation League has asked the Surface Transportation Board to establish new standards that would allow shippers who are captive to a single Class I rail carrier to qualify for competitive switching of their freight to a second carrier if certain criteria are met.
The proposal, the subject of hearings March 25-26, is opposed by the railroads, who have said it would override market forces by forcing the railroads to turn over to their competitors substantial portions of rail traffic on the tracks they own and maintain.
“Our members’ request is simple and straightforward: Help us bring a measure of fair competition to the captive rail shipper market without harming the Class I railroads,” NITL President Bruce Carlton said in a statement. “It is clearly in our members’ interest to have a strong and viable rail system capable of meeting their needs without sacrificing the rails’ economic health.”
Association of American Railroads President Edward Hamberger said the NITL proposal would give a small group of shippers the right to demand that in some cases where one railroad serves their facility, the serving railroad must transfer or “switch” loaded rail cars to competitors.
“This proposal is a solution looking for a problem,” Hamberger said in a statement. “Railroads already voluntarily switch traffic when it makes economic sense for all parties.”
The STB has taken the proposal under advisement and has not said when a decision will be announced.
