By TIM ALEXANDER
Illinois Correspondent

WASHINGTON, D.C. — A coalition of 40 companies and organizations representing U.S. agriculture, energy, manufacturing and transportation sectors issued a letter to Congress on Friday, urging swift action on freight rail reform.
“This letter was sent to every member of Congress,” said Bob Szabo, executive director and lead counsel for rail-reform group Citizens United for Rail Equity (CURE). “(July 15 was) the rail industry’s lobbying day on Capitol Hill, and we wanted to ensure our voice could be heard.”

The letter states, in part, that up to 40 percent of the nation’s rail freight customers are not enjoying the benefits of railroad transportation competition. Many have experienced rate increases throughout the recent deep recession, while suffering from indifferent service and the transference of costs formerly absorbed by railroads to customers in the form of surcharges, the letter alleges.

“The letter states that monopoly pricing by freight rail companies is costing their business, members and consumers at a time when the economy is still weak and the costs can be least afforded,” said Chad Kolton, a media communications representative for CURE. “They make the point that reform is needed, and based on these recent events, progress is growing.
“This follows closely on the heels of two major developments affecting this huge component of our transportation infrastructure: a letter to President Obama from his Export Council made up of 19 corporate CEOs calling for reform of the freight rail industry, and a recent hearing by the STB (Surface Transportation Board) to consider what reforms may be needed.”

The letter to Congress, signed by entities such as the DuPont Co., National Farmers Union and the National Grain and Feed Assoc., states that companies are being adversely affected by unfair freight rail shipping charges to the point that some U.S. plants have been forced to shut down.

“These practices can be curbed through reasonable pro-competitive modifications of the current regulatory program that will not undercut railroad financial health,” the letter to Congress concluded.