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On April 11, seven U.S. senators led by Sen. Conrad Burns (R-Mont.) introduced a bill that offers relief to captive shippers.


Supported by the American Chemistry Council, Alliance for Rail Competition and Consumers United for Rail Competition, the bill would clarify national rail policy under the Interstate Commerce Commission (ICC) Termination Act and require Surface Transportation Board to ensure effective competition among railroads at origins and destinations; enforce reasonable rail rates in the absence of effective competition; and maintain consistent and efficient rail service for shippers, including timely distribution of rail cars.


The bill would require STB to:


• provide "final offer" arbitration of certain rail-rate cases;

• remove paper barriers in future line sales or leases to regionals and short lines, and invalidate such provisions that have existed for 10 years;

• eliminate ICC's "anti-competitive conduct" test instituted in the mid-1980s for terminal area and switching agreements;

• place a cap on filing fees in rate cases involving "coal rate guidelines" to federal district court levels;

• mandate that railroads quote rates to customers between any two points where freight moves originate, terminate or transfer, when requested by a shipper; and

• declare that all or part of a state is an inadequate area of rail competition if petitioned by a state.
The legislation also would require U.S. Department of Transportation to issue a tri-annual study on the extent of rail-to-rail competition, and U.S. Department of Agriculture to create a rail customer advocacy office.



"It has become evident to me that there are some clear deficiencies within the way we manage commerce on our rails," said Burns in a prepared statement. "Improving this problem is vital to our nation, and I feel that this legislation does well in ensuring that transport by rail remains both effective and stable in the years to come."