• Voices for Transparency and Process Reform

    OLIN CORPORATION

    “SunBelt is a perfect example of how the lack of competition for captive shippers allows railroads to impose onerous rates and terms. Norfolk Southern has increased the tariff rate by 817% over the original contract rate establishged in 1997. For comparison, the consumer price index has increased only 40% over this same time period.”

    – John L. McIntosh, Senior Vice President, Operations, Olin Corporation written testimony to the Surface Transportation Board, June 22-23, 2011

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  • Voices for Transparency and Process Reform

    NORTH CAROLINA DEPARTMENT OF TRANSPORTATION

    “The current state of rail competition in North Carolina fundamentally undermines our ability to compete in the global shipping marketplace and to adequately serve the needs of shippers seeking to transport goods to, from or through North Carolina […] limiting the market opportunities for both imports and exports - a foundation of our State's economy. […] This translates into jobs lost for North Carolinians and into higher costs for our state's businesses to move goods and serve customers.”

    – Jim Trogdon, P.E., Chief Operating Officer, North Carolina Department of Transportation, written testimony to the Surface Transportation Board, June 22-23, 2011

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  • Voices for Transparency and Process Reform

    NATIONAL GRAIN AND FEED ASSOCIATION

    “For U.S. agriculture to remain globally competitive, we have to have access to affordable transportation to move grain out of the Dakotas, Kansas, Nebraska, Iowa, Minnesota, and other major production areas in the Midwest to ports and to processing and feeding facilities. Preserving [rail] competition will help to make this outcome a reality, and we think could grow the railroads' agricultural traffic over time.”

    – Kendell Keith, President, National Grain and Feed Association written testimony to the Surface Transportation Board, June 22-23, 2011

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  • Voices for Transparency and Process Reform

    SOUTHERN COAL CORPORATION

    “For those shippers captive to the railroads, including many coal mines, their market value and ability to earn revenue are completely dependent on the railroad. However, given the monopoly position allowed railroads in many areas of the country, combined with the absence of mechanisms to timely address instances of anticompetitive service shortcomings or price gouging, the railroads have no meaningful incentive to take action to resolve such problems. This state of affairs is undermining the ability of companies like Southern Coal to successfully compete in the marketplace, both domestically and abroad.”

    – J Kevin Buster, Southern Coal Corporation, written comments submitted to the Surface Transportation Board,
    April 12, 2011

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  • Voices for Transparency and Process Reform

    TOTAL PETROCHEMICALS USA, INC.,

    “Railroads have brought their monopolistic pricing power into full view over the last several years, in one recent example, an eastern railroad increased TOTAL'S base rates almost 50% from 2007 to 2009. Included in these rates were captive lane increases of as much as 100%, resulting in revenue/variable cost (R/VC) ratios of 800% or more. This included an attempt of an increase by nearly 13% from already excessive rates in a recession year. As a consequence of these rate increases, TOTAL'S ability to compete in certain eastern markets was impaired.”

    – Geoffroy Petit, TOTAL Petrochemicals USA, Inc., written comments submitted to the Surface Transportation Board, April 12, 2011

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  • Voices for Transparency and Process Reform

    THE FERTILIZER INSTITUTE

    “[P]hosphate shippers, overall, have experienced rate increases of 60% from 2006-2010 for highly-efficient unit train shipments in railroad-owned cars, and a 61% increase in private cars. During this same period, the Consumer Price Index rose by only 6%. In other words, rail rates rose ten times faster than the rate of inflation.”

    – Jeffrey O. Moreno, The Fertilizer Institute, written comments submitted to the Surface Transportation Board, April 12, 2011

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  • Voices for Transparency and Process Reform

    CF INDUSTRIES, INC.

    “Since the last consolidation of the railroads in early 2000's, CF has seen its rates increase far beyond any cost measure index including the railroad's own Railroad Cost Adjustment Factor - Unadjusted (RACF-U). Since 2004, CF has incurred rate increases on certain routes of over 100%. Generally, CF receives rate quotes with revenue variable cost (RVC) ratios well above 180%. Some rate quotes have had RVC ratios well over 1000%.”

    – Philipp Koch, Vice President, Supply Chain, CF Industries, Inc., written comments submitted to the Surface Transportation Board, April 12, 2011

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  • Voices for Transparency and Process Reform

    OCCIDENTAL CHEMICAL CORPORATION

    “In 2010, OxyChem shipped 63,000 loaded railcars and incurred more than $220MM in rail freight charges. Over the past five years, including a period of general economic recession, OxyChem has experienced exorbitant rate increases. Our rates have increased on average from 30% to 160% for all chemical commodities.”

    – Robin Burns, Vice President–Supply Chain, Occidental Chemical Corporation, written comments submitted to the Surface Transportation Board, April 12, 2011

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  • Voices for Transparency and Process Reform

    THE NATIONAL INDUSTRIAL TRANSPORTATION LEAGUE

    “When competition was more prevalent, rail contracts were true bilateral agreements, in which the shipper committed cargo volumes, the railroad provided service commitments, and the parties both negotiated liability and other terms. Today, many rail contracts look no different than a tariff, contain cancellation rights on 30-days notice, and are devoid of any service obligations. The railroads' refusal to negotiate and enter into mutual contract terms illustrates their dominant market position.”

    – Karyn A. Booth and Jason D. Tutrone, The National Industrial Transportation League, written comments submitted to the Surface Transportation Board, April 12, 2011

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  • Voices for Transparency and Process Reform

    Wisconsin Industrial Energy Group

    “Wisconsin's electric rates have gone from some of the lowest in the country to now among the highest in the Midwest. One reason for escalating rates is the delivery issues and costs of coal. Wisconsin utilities have experienced an increase in rail rates as high as 93 percent in recent years.”

    – Todd Stuart, Executive Director, Wisconsin Industrial Energy Group, written comments submitted to the Surface Transportation Board, April 12, 2011

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  • Voices for Transparency and Process Reform

    PPG Industries, Inc.

    “PPG is subject to very different rate structures at its plants based on a lack of competitive rail access. PPG's plant in Natrium, WV is captive to one railroad (CSX) while PPG's facility in Lake Charles, LA has access to three railroads (BNSF, KCS, UP). The cost per ton for shipments of chlorine from Natrium, WV was approximately 70% higher than those from Lake Charles, LA in 2004. This premium increased to almost 85% in 2010. This significant discrepancy in rates discourages the most effective management of PPG's assets, including both transportation and manufacturing.”

    – Karyn A. Booth, PPG Industries, Inc., written comments submitted to the Surface Transportation Board, April 12, 2011

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Consumers United for Rail Equity (CURE) is a coalition representing freight rail shippers. CURE is working to educate the public on the impacts to consumers from railroad practices through a growing coalition of industries and associations.

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