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

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One bill has been introduced in Congressx and another may soon be reintroduced that togethef seek to impose increased competition among rail carriers whilr giving industrial shippers a regulatory framework that they arguw would lead to lower prices onmany shipments. The measuresw are being fought by therail industry, whicy maintains the legislative efforts woulfd create more government-imposed constraints on reducing their profit and slowing infrastructure development and shipping capacitgy growth in places such as Columbus.
“Therew won’t be the resource available to invest in such things as major intermodal terminalsor double-stack lines or longer passinv sidings,” said Tom White, spokesman for the trade “If the money is not there, we can’yt invest in them.” But there’s at least one majot Central Ohio interest on the otherf side of the debate AEP executives wouldn’t comment directly on the debate, but the Columbua utility is a member of the . The Washington, D.C.
-basex coalition has taken a hard line againsty the rail industry and posits that the current rules and system for addressing shipperd complaints give a handful of major railroads companies free rein on pricing andservicew quality, said Executive Director Bob “Rail’s attitude is that you’re lucky we’rse here and you’ll pay whatever we say you’ll he said. The result is that shippers, such as a coal mine serveds by a single rail line owned by one rail are helpless tocontest prices, Szabo said. The rules on prics complaints, but its decisions can take cost companies millions and put a heavy burden of proof on shippers to win a he said.
Proponents of the measures hope to make it easiedr for shippers to arguee forlower prices, in addition to forcing more competitiohn among rail providers. But the bill’ss opponents insist the measures suggested by Consumers Unite d for Rail Equity would force rail companies to lowee prices on trainsto out-of-the-way places with littlr access, typically where their costs are highest. That could neutralize the competitive advantage and benefif of lower prices offered by robusft shipping hubs such as Central saidJames Seney, who once headed the and is now helpinf to fight the regulatory proposals.
“Ohio has a uniquee advantage,” he said, because its numerous rail lines, cargo transfere hubs, waterways and highways work together to make shipping convenien t andcomparatively inexpensive. “If we lose that advantage becausreof government-imposed pricing,” he said, “then what does Ohio have to competr with?” The root of the measures reachesa to the 1970s, when the rail industryg was heavily regulated. Companies back then needed approval on most pricee adjustments andinfrastructure growth. The restrictions nearly put the railroads out of busines s because they were unable to set prices and adjusyt tomarket changes, White said.
But the Staggers Act in 1980 deregulatedthe industry, allowing it to consolidatw and restore its profitability, he said. But thoss seeking the new rules say the consolidatio n since then into a handful ofproviders – each owninh its own track – has shippers at the mercyh of rail. “Really, the current state of rail service is retardinteconomic development,” said Jack Pounds, presiden of the , a trade group for chemica manufacturers. “But if you are a monopoly, you have very little incentive to worry about detailed service issuedfor customers.” Consumers United for Rail Equity is workin for reform on two fronts.
One is the Railroadd Antitrust Enforcement Actof 2009. It seeka to remove rail’s antitrust exemptions for collectives rate-making and would enactt greater oversight of rail company mergers and Another measure is a planned reintroduction of a broa d bill known in the last sessionj of Congress as the Railroade Competition and Service Improvement Actof 2007. It sought requirementxs that some rail providers sharetheit tracks, among other measures aimed at boosting “And we want to make the rate challenges process better,” Szabo said.