CURE :: Consumers United For Rail Equity

Rail Customer Day 2009
Wednesday, March 25

Each year advocates from a broad spectrum of the rail shipper community and from all parts of the U.S. traveled to Washington, D.C. to meet with policymakers and their staffs for as part of Rail Customer Day on Capitol Hill. 2009 participants had the opportunity to speak directly to the men and women who shape freight rail policy and expressed to them how these policies impact their businesses and American consumers.

2009 Rail Customer Day Highlights

During their meetings on Capitol Hill, Rail Customer Day participants specifically requested Members of Congress support the passage of the Railroad Antitrust Enforcement Act of 2009 (S. 146/H.R. 233). Additionally, Members heard directly from their constituents on why it is imperative to improve the rate challenge process at the Surface Transportation Board (STB).

To learn more about the day's activities visit the 2009 Rail Customer Day Journal.

Rail Customer Day 2009 Materials:

Railroad Antitrust Enforcement Act (H.R. 233 and S. 146):

S. 146/H.R. 233, legislation introduced by Sen. Herb Kohl (D- WI) and Rep. Tammy Baldwin (D-WI), will remove the railroads’ exemption from antitrust law and place the industry under the same antitrust enforcement laws as all other U.S. businesses. The Senate Judiciary Committee approved S. 146 on March 5th on a bipartisan 14-0 vote.

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

Bill summary and cosponsor list.

Surface Transportation Board (STB) Reform Legislation:

Rail reform advocates will also ask lawmakers to support the introduction and passage of legislation to reform the rate challenge process of the STB, the railroads’ federal regulatory agency. Chairman James L. Oberstar (D-MN) of the House Transportation and Infrastructure Committee and Chairman John D. Rockefeller (D-WV) of the Senate Commerce, Science and Transportation Committee have both indicated that they are developing their legislation for re-introduction in the 111th Congress. The proposed legislation would reform the STB to level the playing field for shippers and make the rate case process fairer.

Cases before the STB currently take years to litigate and cost rail customers millions of dollars to pursue. And instead of acting as a regulator to the railroads, the STB has been little more than a rubber stamp for railroad monopoly power. Since 2000, rail customers have achieved meaningful relief in less than 20 percent of cases filed with the STB. These issues prevent many rail shippers from ever filing their case.

Summary of STB reform legislation from 110th Congress (pdf).

For more information on Rail Customer Day 2009 please contact Stuart Hall at (202) 298-1959 or sch@vnf.com.