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8/27/2024
The Surface Transportation Board has granted the Association of American Railroad's request for an extension on an initial deadline for implementing new regulations involving reciprocal switching agreements.
In April, the STB adopted a regulation that provides for the prescription of reciprocal switching agreements as a means to promote adequate freight-rail service through access to an additional line-haul freight carrier. As part of implementing the regulation, the STB required Class Is to submit certain service data starting Sept. 4.
But the AAR filed for an extension. While the Class Is have been working on adapting their systems to produce the new metrics under the new regulations, the railroads have not received a reporting template from the board, AAR officials said in their request. The association asked the STB to postpone the initial reporting deadline for 30 days after the railroads receive the template.
The board extended the deadline to Sept. 25.
Under the new regulation, STB-prescribed reciprocal switching agreements will allow shippers or receivers to gain access to an additional line-haul carrier, while still allowing the incumbent carrier to compete for the customer’s traffic. Reciprocal switching orders by the board will be for a minimum of three years and a maximum of five years.