OABA Signs Joint Statement to Surface Transportation Board

Discussion continues on STB grain rail rate proceedings

The Ohio AgriBusiness Association has joined with 18 agricultural organizations to sign the National Grain and Feed Association’s joint statement to the federal Surface Transportation Board (STB). The document was signed as part of the NGFA’s proposal to the June 10 public hearing examining ways to improve the agency’s procedures for challenging unreasonable grain rail rates.

In the hearing, acting Chairman Deb Miller stated STB fully intends to come to a resolution on the grain rail rate proceeding, in addition to other ongoing rail regulatory change proceedings on competitive switching, exempt commodities and revenue adequacy. Though it is unlikely STB will implement a new system for rate challenges, the agency will likely look to changes to procedure to expedite and simplify rail rate challenges.

A proposal was also submitted by the Alliance for Rail Competition and supporting testimony was given by BSNF Railway’s John Miller. Miller testified shippers, particularly small shippers, have a legitimate point in complaining about the existing rate-complaint process at STB.

Other railways were not as supportive of changes to the rate challenge procedure. Representatives of Union Pacific Railroad, CSTX, Norfolk Southern and Canadian Pacific opposed points in NGFA’s proposal. For more information on the testimonies given at the hearing, click here.

Click here to read the joint statement signed by OABA. 

At the hearing, a comprehensive new National Academies of Science Transportation Research Board (TRB) study was released to the public for the first time. The study largely concurred with the NGFA and other shipper groups’ in stating that economic regulation of the freight rail industry has not kept pace with the post-Staggers Rail Act and needs to be overhauled. A two-page summary of the TRB study is available here. Click here for the full, 190-page report.