Coalition Demands Change In Federal Rail Shipping Rules

Lawmakers and industries that ship goods via rail are pressuring the federal government to overhaul transportation rules in order to ease shipping delays.

Farmers shipping a corn harvest or utility companies receiving propane by rail generally work with the railroad company that owns the tracks they need to use. If that corn or propane can reach its destination with one company’s tracks, then regulators say it must stick to them.

Some industries, however, want these rules changed. They want to see what’s known as “competitive switching” become more widespread, which would allow shippers to choose the route they take, not the railroads.

Senator Tammy Baldwin is urging the Surface Transportation Board to establish rules on the issue. She says allowing a shipper to use multiple railroads would cut back on delays and create more competition in the industry.

“For many people who rely on freight rail to ship products, they have only one freight rail option,” said Baldwin. “That makes it more of a monopoly than a competitive market for them.”

According to the Association of American Railroads, competitive switching could lead to lower revenues for the industry. Spokesman Ed Greenberg said railroad companies are also concerned about service interruptions.

“It complicates the system, but also it adds more stops and starts for moving traffic because that will mean moving it from one railroad to another,” he said.

The Wisconsin Farm Bureau, energy companies, and the lumber industry are among the groups pushing for allowing competitive switching.