Contact: Dana Kelroy
Director of Media Relations
(608) 258-4391
dana.kelroy@cooperativenetwork.coop

FOR IMMEDIATE RELEASE
March 25, 2009

Cooperative Network promotes rail reform legislation on Capitol Hill

Washington, D.C. (March 25, 2009) – Cooperative Network joined freight rail shippers from across the country on Capitol Hill to urge Congress to stop the railroads’ monopoly power, and to end the hidden tax levied on American consumers by railroad overcharges for shipping U.S. consumer goods. 

Wisconsin and Minnesota cooperatives were represented at the event, Rail Customer Day, sponsored by Consumers United for Rail Equity (CURE) as an opportunity for local rail customers to bring back-home voices and faces to members of Congress.  CURE supports the enactment of the Railroad Antitrust Enforcement Act (S. 146, H.R. 233) that would bring the railroads under the nation’s antitrust laws.

“For too long Wisconsin and Minnesota cooperatives and captive shippers across the nation have suffered declining service, unreliable rail shipments and unreasonably high costs, which ultimately hurts our ability to serve our members,” said Bill Oemichen, Cooperative Network president and CEO.  “This legislation is long overdue.  Competition will ensure a level playing field in our freight rail system and ultimately protect our consumers.”

While on Capitol Hill, Cooperative Network Vice Presidents Share Brandt and Amy Fredregill met with members of the Wisconsin and Minnesota Congressional delegations and staffs.  In addition to discussing the need to restore competition to the railroad industry, they also stressed the need to reform the rate challenge process of the Surface Transportation Board (STB), the railroads’ federal regulatory agency, and make other improvements in rail policy.

“The rate challenge process at the STB simply doesn’t work,” said Fredregill.  “Currently, rail shippers must endure years of litigation and pay millions of dollars in fees, all while paying the rate that is being challenged.  As a result, many shippers with legitimate cases do not file with the STB.” 

Cooperative Network met with the Congressional delegations armed with a new survey of 170 businesses that use the railroads to ship their goods.  The survey was conducted by the rail transportation consulting firm Escalation Consultants, Inc. from February 25 to March 5.  It revealed that of the 170 businesses surveyed:

• The high costs of rail transportation contributed to nearly half (forty-nine percent) of the firms losing business. 
• Eighty-one percent moved shipments off of rail because of increased rates, mostly switching to truck traffic. 
• Sixteen percent of the firms reported the high costs of rail transportation contributed to employee layoffs.  
• Seventy-five percent said the railroads’ lack of consistent service is a primary problem for their business.

Freight rail customers pointed to the survey as clear evidence that the current system puts too much power in the hands of the railroads and that Congress must enact rail reform legislation to prevent further U.S. job losses and higher prices for consumer goods.

The Railroad Antitrust Enforcement Act of 2009 (H.R. 233/S. 146) would end the major railroads’ broad exemption from the nation’s antitrust law to which all other U.S. businesses must adhere.  On March 5, the Senate Judiciary Committee unanimously approved S. 146, which now awaits action on the Senate floor.

Cooperative Network serves more than 600 member-cooperatives, owned by more than 6.3 million Wisconsin and Minnesota residents, by providing government relations, education, marketing, and technical services for a wide variety of cooperatives including farm supply, health, dairy marketing, consumer, financial, livestock marketing, telecommunications, electric, housing, insurance, worker-owned cooperatives, and more. For more information about Cooperative Network, visit www.cooperativenetwork.coop.