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Better Rail Environment Urged by Poultry Industry

by 5m Editor
27 April 2011, at 2:00am

US - The poultry industry, among others, is calling for a more competitive rail environment.

Twelve major agricultural organisations, including the National Chicken Council, have urged the federal Surface Transportation Board (STB) to improve its regulatory structure to foster a more competitive rail environment.

Enhancing both regulatory access to the agency and problem-solving in rail markets between carriers and their customers could spur growth in both US agriculture and the rail sector, which in turn would support an 'improved overall US economy and provide for more vibrant job growth in many sectors served by rail,' the organisations said in a joint statement submitted to the STB.

Comments focused on rail competition issues such as rates and switching charges; unreasonable business practices imposed unilaterally by carriers; contractual barriers that preclude competition; and improvements to the agency's arbitration procedures to foster fair, objective and expeditious dispute-resolution between railroads and shippers. The statement was submitted in response to a proceeding launched by the STB to explore the current state of rail competition and potential policy initiatives to promote additional rail-to-rail competition.

The groups noted that railroads have become 'very profitable' based upon any reasonable business yardstick, and there are 'few risks to general rail profitability if the STB chose to make some reasonable adjustments in moving toward a more competitive (rail) environment'. In fact, carriers in the long term are likely to benefit by reasonable increases in competition, the agricultural organisations said. The National Grain and Feed Association provided the lead on this effort.