Oberstar Introduces STB Bill

Rep. James L. Oberstar (D-Minn.) introduced legislation Nov. 18 reauthorizing the Surface Transportation Board that would have a drastic effect on future rail mergers.

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His proposal would limit the “cram-down” exemption, which allows rail carriers to abrogate worker contracts following a merger approved by the STB. It also narrows the scope of federal, state and local laws a railroad can bypass to carry out the approved merger, and limits the exemption to one year after the acquisition.

The bill would allow shippers to challenge the reasonableness of rates charged on route segments; simplify the rate protest process for small captive grain shippers; provide for mandatory terminal access and reciprocal switching rights; simplify standards for determining market dominance; require carriers to submit monthly service quality performance reports to the Department of Transportation; and requires the STB to impose conditions on mergers it approves to mitigate the effects on local communities.

Problems with recent rail mergers approved by the STB spurred the legislation, said Oberstar, the senior Democrat on the House Transportation Committee.

For the full story, see the Nov. 29 print edition of Transport Topics. Subscribe today.