Group fights to end railroads' antitrust exemption

Brownfield Ag Network
May 4, 2009

Legislation to remove the railroads’ antitrust exemption is winding its way through Congress. The Senate is expected to vote in early June on the Railroad Antitrust Enforcement Act of 2009.

Bob Szabo is the executive director of CURE—Consumers United for Rail Equity. He says passage of the antitrust bill, along with companion legislation that would reform the Service Transportation Board, would increase competition and fairness in the rail freight industry.

“Both bills will knock down some barriers the railroads have put up to access a second competing railroad,” says Szabo, “and those people should get access to market rates and service dictated by the marketplace.”

Szabo says under the current antitrust exemption, U.S. freight railroads have consolidated to four regional monopolies carrying 90 percent of the nation’s freight rail traffic. He says the railroads exert their market power through increased shipping rates and poor service for captive rail shippers.