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Railroad Regulation: Current Issues Associated With the Rate Relief Process

  Premium   Download PDF Now (114 pages)
Report Type Reports and Testimonies
Report Date Feb. 26, 1999
Report No. RCED-99-46
Subject
Summary:

As a result of mergers, bankruptcies, and the redefinition of what constitutes a major railroad, the number of major freight railroads in the United States collectively known as class I freight railroads declined from 63 in 1976 to nine in 1997. These major railroads moved almost 1.6 billion tons of freight in 1997, generating $35 billion in revenue. Some shippers and their associations have raised concerns that mergers and consolidations in the railroad industry have significantly reduced competition and have given large railroads wide latitude in controlling the rates that they charge companies that use rail to transport their commodities. This report describes (1) the Surface Transportation Board's rate relief complaint process and how it has changed since the Interstate Commerce Commission's Termination Act of 1995 became law, (2) the number and the outcome of rate relief cases pending or filed since 1990, and (3) the opinions of shippers about the barriers they face when bringing rate complaints to the Board and the potential changes to the process to reduce these barriers.

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