(Consumers United for Rail Equity issued the following news release on March 9.)
WASHINGTON — More than 200 consumers and executives of industries dependent on rail to ship their goods visited Capitol Hill today to advocate for relief from the high prices, poor service and lack of competition they increasingly face.
Unrestrained monopoly power has brought record profits to the rail industry, while manufacturers, farmers, electric utilities, and their customers pay the price. Rail service problems have contributed to this winter’s spiraling electricity and natural gas prices, prompting increased calls for reform to federal rail policy.
“American companies and their consumers are being ill-served by the railroads and it’s time it stops,” said Bob Szabo, executive director for Consumers United for Rail Equity (C.U.R.E.).
C.U.R.E. -– representing energy companies and manufacturers of such critical commodities as steel, plastics, chemicals, paper and lumber -– is urging Congress to pass legislation aimed at increasing rail competition and providing more protection to rail customers from railroad monopoly power.
Partial railroad deregulation, which began with the 1980 Staggers Act, unintentionally resulted in the railroad industry having monopolistic control over thousands of miles of rail routes. Industries that rely on these routes to ship their goods are considered “captive” because they have no option but to use a single railroad and, as a result of the lack of competition, often face high rail rates and poor and unreliable service.
Under current law freight shippers who appeal rate increases face years of costly legal battles with little likelihood of success. Proposed legislation (H.R. 2047 and S. 919) would improve the existing Surface Transportation Board rate challenge process and eliminate excessive fees for filing rate cases. Additional legislation, the Railroad Antitrust and Competition Act of 2005 (H.R. 3318), removes the railroad industry’s exemptions from the nation’s antitrust laws. The three bills have broad support from members of both political parties, representing geographically diverse regions of the nation.
“This legislation is long overdue. The railroads have been allowed to take shippers for a ride and consumers are paying the price — especially this winter, when coal is desperately needed and energy prices continue to climb,” said Glenn English, CEO of the National Rural Electric Cooperative Association and a former Oklahoma Congressman. “With almost one-quarter of the nation’s rail system subject to monopolistic shipping rates and unreliable service, it’s time for Congress to act.”
About C.U.R.E.
Consumers United for Rail Equity (C.U.R.E.) is a coalition of captive rail customers focused on congressional and administrative policies that are favorable to rail customers. Today, C.U.R.E. represents rail customers seeking pro-competitive changes in law and federal policy to help protect rail customers against rate and service problems and promote the development of effective competition in the freight rail industry. For more information visit: http://www.railcure.org.