U.S. Reps. Donald Payne, Jr. (D-NJ), Peter DeFazio (D-OR), David Scott (D-GA) and Jim Costa (D-CA) introduced Tuesday legislation to create a fair marketplace for Class 1 freight railroads.
The Freight Rail Shipping Fair Market Act would reauthorize the Surface Transportation Board, and create a fair marketplace for a Class 1 freight railroads and their captured customers, the legislators said.
“The freight rail companies have focused on profits instead of performance and it has led to delays and problems in how we transport commodities to farms, factories, and stores across the country,” said Payne, the chair of the House Subcommittee on Railroads, Pipelines, and Hazardous Materials. “My bill gives the Surface Transportation Board the power to prohibit rail rate increases during a rail emergency and resolve rail emergencies when they occur. This bill will improve the speed and reliability of rail service and guarantee that freight rail shipping continues to improve in the future without unnecessary regulations.”
According to Payne’s office, the legislation would strengthen the Board’s authority to address rail service emergencies, as well as require rail contracts to include service delivery standards and remedies. The bill would also provide the board with clear direction on how to resolve common carrier obligation complaints, and adequately fund the board. Additionally, the bill creates financial incentives for railroads and their customers to move railcars efficiently, and support freight railroad efforts to identify where freight is located while in transit.
“It is imperative that our rail network is reliable, and yet consolidation and Wall Street pressures on railroads to cut costs and increase profits have made that near impossible,” DeFazio, chair of the House Committee on Transportation and Infrastructure, said. “This bill will level the playing field and provide railroad customers—many of which are transporting key food and energy products—the service they deserve. This bill will also provide the tools and guidance the Surface Transportation Board needs to fulfill its mandate and better regulate disputes among Class I railroads and their customers, weed out unfair practices, and incentivize efficient operations.”