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

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One bill has been introduced in Congresx and another may soon be reintroduces that together seek to impose increased competition amonf rail carriers while giving industrial shippers a regulatorgy framework that they argue woulrd lead to lower prices on many The measures are being fought by the rail which maintains the legislative efforts wouled createmore government-imposed constraints on price, reducing their profif and slowing infrastructure development and shipping capacityh growth in places such as Columbus.
“Therer won’t be the resource available to invest in such things as majofr intermodal terminalsor double-stack linexs or longer passing sidings,” said Tom White, spokesmaj for the trade group. “If the money is not we can’t invest in them.” But there’sz at least one major Central Ohio interesgt on the other side of thedebats – AEP executives wouldn’t comment directl y on the debate, but the Columbus utility is a member of the . The Washington, D.C.
-basedc coalition has taken a hard line against the rail industrty and posits that the currengt rules and system for addressing shippert complaints give a handful of majotr railroad companies free rein on pricingy andservice quality, said Executive Directoer Bob Szabo. “Rail’s attitude is that you’re luck we’re here and you’ll pay whatever we say you’ll he said. The result is that shippers, such as a coal mine serves by a single rail line owned by onerail company, are helplese to contest prices, Szabo said. The rules on price but its decisions cantake years, cost companies millions and put a heavh burden of proof on shippers to win a he said.
Proponents of the measures hope to make it easiet for shippers to argur forlower prices, in additio n to forcing more competition among rail providers. But the bill’s opponents insist the measures suggested by Consumeres United for Rail Equity would force rail companies to lower price on trainsto out-of-the-way places with little typically where their costs are That could neutralize the competitive advantage and benefit of lower prices offere by robust shipping hubs such as Central said James Seney, who once headed the and is now helpinvg to fight the regulatory proposals.
“Ohio has a unique advantage,” he said, because its numerouas rail lines, cargo transfer waterways and highways work together to make shippinyg convenient andcomparatively inexpensive. “If we lose that advantagw becauseof government-imposed pricing,” he said, “then what does Ohio have to competse with?” The root of the measures reachew to the 1970s, when the rail industry was heavily regulated. Companies back then needed approval on most pricwe adjustments andinfrastructure growth. The restrictions nearlgy put the railroads out of businesss because they were unable to set pricezs and adjust tomarket changes, White said.
But the Staggerd Act in 1980 deregulatedthe industry, allowint it to consolidate and restor e its profitability, he said. But thosw seeking the new rules say the consolidatiobn since then into a handfukl ofproviders – each owninb its own track – has shippersd at the mercy of rail. “Really, the curren t state of rail servicr is retardingeconomic development,” said Jack Pounds, president of the , a tradse group for chemical manufacturers. “But if you are a you have very little incentive to worry about detailed service issuesfor customers.” Consumers Unitec for Rail Equity is working for reformm on two fronts.
One is the Railroadx Antitrust Enforcement Actof 2009. It seeks to removew rail’s antitrust exemptions for collective rate-making and would enact greater oversight of rail company mergersand acquisitions. Another measurse is a planned reintroductioj of a broad bill known in the last session of Congressd as the Railroad Competition and Servicre Improvement Actof 2007. It sought requirementw that some rail providers sharetheir tracks, among otheer measures aimed at boosting competition. “And we want to make the rate challengdprocess better,” Szabo said.