U.S. Sens. Shelley Moore Capito (R-WV) and Tammy Baldwin (D-WI) announced their support for a proposed rule from the Surface Transportation Board (STB) to address unreliable rail service and high costs of rail shipping.
In a bipartisan letter of support, the two senators wrote to STB Chairman Martin Oberman that the lack of reliable rail service is an operations disruption for farmers, loggers, energy producers, and manufacturers, causing higher prices and increased costs that are passed on to consumers.
“We have been concerned about the prolonged service challenges facing many rail shippers in recent years and have appreciated the efforts taken by the Board to date to require service improvement plans and increased data reporting,” the senators wrote. “We share the Board’s concerns about declines in rail service and believe the reciprocal switching and data provisions of the Notice of Proposed Rulemaking (NPRM) would take important steps in supporting many shippers.”
In September, the STB issued a Notice of Proposed Rulemaking on Reciprocal Switching for Inadequate Service, that focused on providing rail customers with access to reciprocal switching, or allowing shippers serviced by one rail carrier to obtain service from a competing railroad if they experience poor surface.
The proposed rule would increase transparency and set objective standards when evaluating service levels, as well as requiring Class I carriers to submit publicly accessible data and adopt a new requirement that shippers can request service data from rail carriers that may impact them and consumers. The STB moved to advance the proposed rulemaking with a 5-0 vote.
“The STB has listened to shippers’ concerns, examined the facts, and responded with proposed performance standards that are an important next step to help address inadequate and deteriorating rail service,” said Scott Gemperline, Director of Government and Political Affairs for the National Mining Association. “For years, shippers have been left with little recourse and lost revenues, ultimately weakening the full spectrum of U.S. supply chains. As the largest user by volume of our nation’s rail networks, and a critical industry that feeds our manufacturing and energy supply chains, this proposed rule will benefit the mining industry and every other industry that depends on the materials we supply.”