Rail Competition Still an Issue
SAN ANTONIO — While a labor-related obstacle to reauthorization of the Surface Transportation Board has been removed, shipper concerns about a lack of railroad competition remain a likely sticking point when Congress tackles the issue again next year.
Earlier this month, railroad officials agreed to suspend a practice called cram-down, in which merged companies unilaterally changed labor assignments in pursuit of greater efficiencies, with the understanding that unions would end their opposition to STB reauthorization.
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Speaking at the annual meeting of the National Industrial Transportation League here Nov. 16, Sen. Kay Bailey Hutchison (R-Texas) declared her desire to enact legislation giving the STB increased authority to encourage railroads to provide competitive service and to give small shippers access to regulatory relief.
“I want it to be realistic for shippers to get a contract for competitive rail service,” said Hutchison, chairwoman of the Senate Surface Transportation Subcommittee, which has jurisdiction over railroads, trucking and the maritime industry.
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