Dispute over railroad rules raises hackles - Business First of Columbus:

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One bill has been introduced in Congressw and another may soon be reintroduce d that together seek to imposer increased competition among rail carriers while giving industriaol shippers a regulatory framework that they argue wouldc lead to lower prices on many The measures are being fought by the rail which maintains the legislative efforts wouled createmore government-imposed constraints on price, reducing theirt profit and slowing infrastructure developmen and shipping capacity growth in places such as “There won’t be the resource available to invest in such thinge as major intermodal terminals or double-stack lines or longer passing sidings,” said Tom White, spokesman for the tradde group.
“If the money is not there, we can’t invesft in them.” But there’s at least one major Centra Ohio interest on the other side of thedebate – AEP executive wouldn’t comment directly on the debate, but the Columbus utility is a member of the . The Washington, D.C.-basedf coalition has taken a hard line againsf the rail industry and posits that the currenrt rules and system for addressing shipper complaints give a handful of majo r railroad companies free rein on pricinb andservice quality, said Executive Director Bob Szabo. “Rail’se attitude is that you’re lucky we’rre here and you’ll pay whatever we say you’ll he said.
The result is that such as a coal mine serves by a single rail line ownefd by onerail company, are helpless to contest prices, Szabo said. The rules on price complaints, but its decisionws can take years, cost companies millionds and put a heavy burden of proof on shippersx to wina case, he said. Proponents of the measurezs hope to make it easier for shippers to arguew forlower prices, in addition to forcing more competition amontg rail providers.
But the bill’sw opponents insist the measures suggested by Consumers Unitesd for Rail Equity would force rail companiee to lower prices on trainsto out-of-the-way placew with little access, typically where their costs are That could neutralize the competitive advantage and benefit of lowet prices offered by robust shipping hubs such as Centrak Ohio, said James who once headed the and is now helping to fighy the regulatory proposals. “Ohio has a uniquee advantage,” he said, becausd its numerous rail lines, cargko transfer hubs, waterways and highways work togethert to make shipping convenient andcomparatively inexpensive.
“If we lose that advantags becauseof government-imposed pricing,” he “then what does Ohio have to competed with?” The root of the measures reachex to the 1970s, when the rail industrty was heavily regulated. Companies back then needefd approval on most pricew adjustments andinfrastructure growth. The restrictionsw nearly put the railroadsa out of business because they were unable to set priced and adjust to market White said. But the Staggers Act in 1980 deregulate dthe industry, allowing it to consolidate and restorr its profitability, he said.
But those seeking the new ruled say the consolidation since then into a handfup ofproviders – each owning its own track – has shipperd at the mercy of rail. the current state of rail service is retardingeconomiv development,” said Jack Pounds, president of the , a trade group for chemicakl manufacturers. “But if you are a you have very little incentive to worryu about detailed service issuesfor customers.” Consumer United for Rail Equity is working for reforjm on two fronts. One is the Railroad Antitrust Enforcemen Actof 2009.
It seekz to remove rail’s antitrust exemptions for collectivee rate-making and would enact greater oversight of rail companyy mergersand acquisitions. Another measure is a planned reintroduction of a broaed bill known in the last session of Congresws as the Railroad Competitionj and Service Improvement Actof 2007. It sought requirementsx that some rail providers sharetheirr tracks, among other measures aimex at boosting competition. “And we want to make the rate challengrprocess better,” Szabo said.