Freight Rail Customers Urge Administration and Congress to Address America’s Economic Security
Rail Reform Needed to Improve Reliability, Accountability and Costs

Washington, DC (February 13, 2007) – On the day that Secretary of Transportation Mary Peters shares her perspective on transportation and the global economy with the U.S. Chamber of Commerce, a group of rail customers who rely on the nation’s railroads to bring their products to market are urging the Bush Administration and Congress to address America’s growing freight rail crisis.

“As Secretary Peters acknowledged today, our nation’s ability to compete in the world economy depends on America’s railroads to deliver safe, affordable and reliable service,” said Glenn English, Chairman of CURE, a group representing rail customers. “That means that Congress must pass real rail reform – legislation that will increase competition and balance the need for more capacity.”

In today’s forum, “Moving Enterprise: Transportation and the Global Economy,” business leaders will discuss the need for expanding rail capacity to improve the reliability of moving critical commodities such as coal and grain. The railroads’ failure to maintain adequate deliveries of coal from the Powder River Basin in Wyoming to utility plants nationwide has further eroded America’s energy independence by forcing some utilities to import coal even though there is an abundant supply of U.S. coal. At the same time, escalating rail rates hit the pocketbook of American consumers who pay more for such things as electricity, food and household goods.

”The rail industry now has the same kind of monopoly power over its customers that caught President Teddy Roosevelt’s attention one hundred years ago. A 19th century monopoly will not work in our 21st century economy,” said English, who served 10 terms in the U.S. House of Representatives and is now CEO of the National Rural Electric Cooperative Association. “Now is the time to open up our freight rail system to competitive pricing and reliable service – both hallmarks of American business.”

Legislation seeking to reform federal rail policy is expected to be introduced soon in the U.S. Congress. An October 2006 report by the Government Accountability Office, “Freight Railroads: Industry Health Has Improved, but Concerns about Competition and Capacity Should be Addressed,” provided additional evidence of the need for reform. (http://www.gao.gov/new.items/d0794.pdf).

The proposed legislation would repeal the antiquated antitrust exemptions of the freight rail industry and reform the Surface Transportation Board to ensure rail customer access to competition and reliable rail service for customers at reasonable costs.

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ABOUT CURE:

CURE is a coalition of rail customers seeking changes in federal law to hold the railroads more accountable to the nation and their customers. The group represents a wide variety of rail customers including public utilities, rural electric coops, power companies; chemical, ethanol, cement and other manufacturers, forest and paper companies, and their customers. For more information visit www.railcure.org