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• freight rail policy reform

Many ACC member companies rely on the railroads to provide reliable and competitive service to deliver their products. Unfortunately, these same companies are facing skyrocketing rail transportation costs and poor service due to outdated and broken freight rail policies that fail to promote access to competitive rail service at their facilities.

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Media Contact: Scott Jensen Phone: 703-741-5834

The chemical industry is the second largest commodity shipped by rail and represents more than 10% of the gross revenue for the railroads.  However, nearly two-thirds of America’s chemical facilities that depend on rail service are served by only one railroad. These “captive customers” (along with many additional captive rail customers in other industries) are routinely subject to unreliable service and exorbitant prices because a single railroad has a monopoly on rail service at these sites. Unfortunately, The Surface Transportation Board, established by Congress to address these concerns, has acted as a barrier to competition.

The combination of unrestrained monopoly power, federal protections and an ineffective STB has led to a lack of fairness and free competition within America’s freight rail system. Instead of a balanced commercial relationship, our members have a one-sided relationship that allows railroads to act with impunity.  

Fixing this problem is one of ACC’s top priorities and essential to the economic viability of our industry in this country. For that reason, ACC believes a legislative solution is necessary. Congress must pass reform legislation that would remove the federal protections for the railroads and the barriers to promote competitive rail service.

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Resources and Links:

• ACC Issue Brief on Freight Rail Competition
• Rail Transportation Safety
• Cal Dooley's Letter to Chairman Conyers Regarding Antitrust Exemptions [5/13/2009]
• Surface Transportation Board—The STB is an economic regulatory agency charged with resolving freight railroad rate and service disputes, reviewing proposed rail mergers, rail line purchases, constructions and abandonments.
• C.U.R.E.—Consumers United for Rail Equity is a coalition of captive rail customers focused on congressional and administrative policies that affect the development of competition in the freight rail industry.

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