By TIM ALEXANDER
Illinois Correspondent WASHINGTON, D.C. — While freight rail reform legislation under consideration by the U.S. General Assembly seems to have slowed to a crawl, two prominent U.S. Representatives and the Iowa-based Soy Transportation Coalition (STC) are urging Congress to get reform measures back on track.
U.S. Rep. James Oberstar (D-Minn.), chairman of the House Transportation and Infrastructure Committee, announced during the National Industrial Transportation Leagues June policy forum his plans to push existing railroad reform legislation through Congress and straight to President Obama’s desk for signature.
At issue – the freight rail industry has gone from dozens of large, so-called Class I carriers to four major carriers today thanks to the Staggers Rail Act of 1980, which deregulated the industry and led to less competition and higher shipping prices, according to Oberstar. More complaints from shippers and rural captive customers have also resulted from the lack of competition in the freight rail industry, he said.
Oberstar is working to draft a companion bill in the House to legislation (S. 2889) passed in mid-December by the Senate Commerce Committee which provides protections to captive shippers who cannot use other transport modes. The legislation also improves shippers access to competing carriers trackage and terminals, and expands the power of the federal Surface Transportaion Board to resolve rate disputes. It also calls for increasing the size of the STB from three to five panelists.
In addition to Oberstar’s announcement, U.S. Rep. Tim Walz (D-Minn.) underscored the need for passing rail reform legislation this year in Washington’s Roll Call publication. Walz opined that the railroads abusive pricing power is hurting farmers and small business owners in addition to shippers and manufacturers.
“Recently, freight railroads were the largest beneficiaries of $1.5 billion in economic stimulus grants awarded by the Department of Transportation, and will also benefit from $8 billion in stimulus money being spent on upgrades for high-speed rail service,” wrote Walz, in part. “In return, we need to ensure that our small businesses and manufacturers that make use of the rail system are treated fairly.”
Promoting competition in the rail industry is an issue that cuts across party lines. I hope the House will take up this important debate and acknowledge the incredibly important role the freight rail industry plays in transporting goods throughout the United States.”
Walz is a member of the House Transportation and Infrastructure Committee.
Meanwhile, a June 15 news release from the STC trumpeted the results of a self-funded study that documents the relationship between the nation’s freight transportation system – including freight rail service – and individual farmer profitability. Farmers, more than any other segment of agriculture, are responsible for paying the lion’s share of the transportation costs of food from the farm to the fork. These additional costs are shared by the consumer and the farmer, the study suggests.
“Farmers may be tempted to believe that once their grain has been delivered, any subsequent transportation costs are the problem of the elevator. In reality, these costs are our problem,” stated Norm Husa, STC member and a farmer from Barneston, Neb. “Farmers should therefore be active to ensure we have a transportation system that is not an obstacle to our profitability.”
The entire STC study on transportation costs, including graphs and data from 36 loading stations surveyed, can be viewed at www.soytransportation.org |
