New report says US freight rail regulations outdated, recommends modernization efforts
Wednesday, June 10, 2015 - 12:00
in Earth & Climate
While a 1980 reform law enabled the modernization and stabilization of the U.S. freight railroad industry, federal regulation has not kept pace with the industry's transformation and should be replaced with a system better-suited for today's freight rail system, says a new congressionally mandated report from the National Research Council's Transportation Research Board. Current policies designed to protect rail shippers who lack transportation options from excessive rates are not working for shippers of most commodities, including grain. More appropriate, reliable, and usable procedures are needed to resolve these rate disputes without threatening the earnings railroads need to pay for their capital-intensive networks.