US rail reform bill clears Senate committee

THE US Senate Committee on Commerce, Science and Transportation has approved a bipartisan bill co-sponsored by Republican senator and ranking committee member Kay Hutchison and committee chairman and Democrat John Rockefeller that contains a proposal for what is considered to be the most comprehensive rail reform legislation to move through the Commerce Committee since the Staggers Rail Act of 1980.

Sponsors of the Surface Transportation Board (STB) Reauthorisation Act of 2009 said it will "comprehensively update and improve the railway industry and address longstanding competitive imbalances for shippers by increasing rail competition, strengthening federal oversight, and improving shipper's access to regulatory relief," according to a statement issued by the Commerce Committee.

Senator Rockefeller said: "For a quarter of a century, I have worked to enact needed rail legislation that would provide real reform and address the shippers' problems. The bill would fix these problems and prepare our rail regulatory structure to encourage a vital, robust rail industry. The bipartisan STB Reauthorisation Act of 2009 is carefully crafted to address rail-shipper imbalances and strengthen the railway industry," he said.

"I will continue to work with Senator Kohl and other members to add antitrust reforms to our bill as it moves to the floor. I look forward to seeing this bill pass expeditiously and be signed into law by the President."

The bipartisan STB Reauthorisation Act of 2009 is said to have been drafted to address rail-shipper imbalances and strengthen the railroad sector.

The bill aims to: increase rail competition by requiring major railroads to quote "bottleneck rates," set standards for "reciprocal switching" and "terminal access" rates, create a process for parties to challenge "paper barriers," and increase STB scrutiny of future railway mergers for competitive, service and environmental effects.

It is also intended to strengthen STB oversight of the railway industry by updating the rail transportation policy, giving the board independent investigative authority, and creating a strong rail customer advocate to help resolve shippers' concerns.

The final goal of the bill is to improve shippers' access to regulatory relief by improving the processes by which rate complaints are resolved, requiring railways to provide service standards to shippers and the STB to review current class exemptions for unregulated railway traffic, and by setting lower fees for filing complaints at the STB, the Commerce Committee statement said.

The legislation is expected to be months away from becoming law as the US House of Representatives must still introduce and act on its own version.

Source: SchedNet