Rail Trade Group Changes Name, Strategy

The Consumers United for Rail Equity trade group, which has been lobbying for changes in rail pricing and service for more than three decades, has been renamed the Freight Rail Customer Alliance in an effort to broaden its membership and focus.

David Sauer, president of the group and a power company executive, said in a statement that the organization’s new advocacy approach is “for freight rail customers working together across industries to improve access to reliable rail service at competitive prices.”

Consumers United, known as CURE, was created in 1984, four years after the rail industry was deregulated, as coal and other bulk shippers tried to convince Congress to make changes in railroad rate and service strictures that were lifted from the carriers in 1980.

Over that period, the group and others have attempted to increase rail-to-rail competition and add service options for customers without access to a second railroad.

None of those efforts has yet led to any legislative change.

“FRCA will advocate for much-needed reforms and process improvements at the Surface Transportation Board and common-sense economic reforms that will result in competitive freight rail service and fair prices,” said Ann Warner of Virginia-based public affairs firm Ann Warner LLC. Warner is the group’s executive director.

“FRCA does not seek economic re-regulation of the railroads; rather, it seeks service options and fair prices that are not held to anticompetitive rates or service practices,” she added.

Its strategy also includes removing the freight railroads’ current antitrust law exemption.

“FRCA has already begun reaching out to organizations representing sectors ranging from alternative energy, chemicals, agriculture, steel, coal, forest and paper to auto manufacturing,” Warner said. “We will advocate for anyone dependent on freight rail who experiences a negative impact on rates or service due to a lack of competition.”

The group, which has more than 3,500 members and consists of coal, grain and other trade associations, supported STB-related legislation that advanced in the Senate this year.

Commerce Committee Chairman Sen. John Thune (R-S.D.) proposed the measure with bipartisan support in the aftermath of rail and other transport disruptions over the past 12 months.

Thune’s bill also was backed by other shipper groups and the Association of American Railroads, which all agreed on changes to STB for the first time since deregulation.

STB changes haven’t yet been addressed by the House.

That measure called for accelerated STB review of cases, adding the power to begin investigation of service or rate issues and expand its membership from three to five commissioners.

However, that measure didn’t include any changes to antitrust law that FRCA favors.

The announcement didn’t specify what additional legislative or regulatory changes would be sought in the future.

Sauer also is senior vice president of Dakota Gasification Co. (Dakota Gas), a North Dakota-based subsidiary of Basin Electric Power Cooperative.

Last year, CURE began a review of its mission and structure, with the intent of attracting more shippers in more industries.