(The following news release appeared on the Association of American Railroads’ website on October 7.)
WASHINGTON — In order to better serve their mutual customers, the Association of American Railroads (AAR) and the American Short Line and Regional Railroad Association (ASLRRA) announced today that they have agreed to expand the successful Rail Industry Agreement (RIA) that has been in effect since 1998.
The agreement was announced at the offices of the Surface Transportation Board (STB). The original agreement was developed following STB proceedings in 1998. It was established to provide a means of dealing with a number of issues between large and small railroads that were identified in the STB proceedings, including car supply, service quality, rate and route principles, and contract interchange requirements or so-called “paper barriers.”
As part of the expanded agreement, a Rail Industry Working Group (RIWG) will become a formal part of the Rail Industry Agreement and provisions describing what constitutes “paper barriers” will be clarified.
“The RIA has proven very effective in improving relations between large and smaller railroads,” said AAR President and CEO Edward R. Hamberger. “It has provided a useful forum for discussing and resolving outstanding issues and promoting the use of rail transportation by substituting facts for anecdotes in addressing problems between carriers.”
ASLRRA President Rich Timmons said, “The agreed upon changes to the RIA and the work of the RIWG can help us reach the next level of cooperation between large and small railroads. As cooperation continues to improve and we resolve issues quickly and fairly, our mutual customers will benefit. This really is a win-win-win situation.”
“I have a strong preference for private sector solutions instead of regulatory action whenever possible,” STB Chairman Roger Nober said. “This amendment should go a long way toward improving operations between large and small carriers so they can all better serve their customers.”
The RIWG was created shortly after the RIA became effective, but was not formally part of it. Under terms of the amendment, the RWIG will consist of seven members from the Class I railroads subscribing to the agreement and seven members from the smaller railroads that subscribe to it. In addition, there will be a non-voting representative from both the AAR and ASLRRA.
The “paper barriers” provisions clarify circumstances under which a short line that has purchased a line from a large railroad may interchange traffic with a third railroad.
As with the original RIA, the amendment will cover all of the railroads that subscribe to it.