Attorneys General Letter
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| Push for rail reform intensifies (full story) |
The legislative efforts passed by the U.S. Senate Judiciary Committee are waiting for approval from the U.S. House of Representatives. This legislation, targeted at the Surface Transportation Board (STB), would dissolve the antitrust exemption under which railroads have operated for 25 years.
According to its Web site, www.stb.dot.gov, "The STB is an economic regulatory agency that Congress charged with the fundamental missions of resolving railroad rate and service disputes and reviewing proposed railroad mergers. ... The agency has jurisdiction over railroad rate and service issues and rail restructuring transactions (mergers, line sales, line construction, and line abandonments); ..."
Groups such as the American Chemistry Council are strong advocates of the proposed bill.
At the start of the year, federal regulators placed a ban on excessive fuel surcharges levied by rail companies and enforced strict rules based on the fees. Several rail companies admitted these surcharges were used to boost revenue. Five of the major freight rail companies are contending with lawsuits over allegations about fixed fuel surcharge prices that have no real connection to fuel prices.
With only a few exceptions, the railroad industry argues it is, in fact, subject to antitrust laws.
In September 2007, the STB awarded a $1 million contract to a consulting firm to evaluate competition among rail companies. The STB initiated the assessment because of concerns expressed in a Government Accountability Office (GAO) report. (The GAO report is available at www.gao.gov/new.items/d0794.pdf).
Expected completion of the STB consultant's study is fall 2008.
Railroad myths and facts
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