(The following appeared on the Dakota Farmer website on May 6.)
“Railroads must be obligated to serve. They should not be able to pick and choose for only their own bottom line interests. They owe their customers and the public more than that.”
That was part of the message delivered by the North Dakota Grain Dealers Association to a hearing before the federal Surface Transportation Board in Washington, DC on April 24.
The STB exercises limited oversight on the nations’ railroads. It had convened the hearing to discuss the common carrier obligation of railroads, the statutory duty to provide transportation or service on reasonable request (49 U.S.C. 11101). More than 40 witnesses appeared at the two-day hearing and others submitted written comments only.
Steve Strege, executive director of the North Dakota Grain Dealers Association, summarized the organization’s view.
“Railroads must make available to all of their customers an adequate supply of serviceable equipment under reasonable terms in response to market needs and then deliver that service on a timely basis,” he said.
When railroads are granted larger service territories through mergers approved by a public body, such as the Interstate Commerce Commission or the STB, some obligations to the public come with it. Providing essential service is one of those, he said.
North Dakota has a many difference crops, some of which are sold in lots of one car or several instead of 100-car trains.
“These should not be pushed to the back of the line in preference for only larger shipments. The common carrier obligation applies to all of them and most big shippers also use small shipment sizes too,” he said.
Since railroad deregulation in 1980 the rail industry has consolidated into fewer larger railroads and the balance of power has shifted even more in their favor. Therefore the STB must take a stronger hand in protecting the interests of rail customers, Strege said.
He cited problem areas cited include excessive exploitation of captive shippers through extreme rates, including inverse rates, and fuel surcharges that exceed actual increased cost of fuel.
Appearing on a panel with the NDGDA were the National Grain and Feed Association, the State of Montana, a coalition of shipper and commodity promotion groups, and Ag Processing Inc. North Dakota Agriculture Commissioner Roger Johnson testified in his capacity as President of the National Association of State Departments of Agriculture. Fertilizer, chemical and coal/electric utility interests also testified, as well as the big four railroad companies in the United States.