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Contact: Chad Kolton                                                                          October 23, 2009
202-288-5519
ckolton@hdmk.org                                                                                              


Statement In Response To Railroad-Shipper Transportation Advisory Council Policy Recommendations

WASHINGTON, D.C.- The Railroad-Shipper Transportation Advisory Council (RSTAC), a group that includes railroads as well as shippers to advise Congress, the U.S. Department of Transportation and the Surface Transportation Board (STB), recently issued policy recommendations on issues being considered by Congress. 

In response, Robert Szabo, Executive Director of Consumers United for Rail Equity (CURE), a coalition of freight rail customers seeking changes in federal law and policy that would require railroads to provide more competitive pricing and reliable service, issued the following statement:

"CURE appreciates that even a railroad-dominated group like RSTAC has called for changes to cargo switching rules, which are important to providing greater protection for consumers. Unfortunately, though, these recommendations fall far short by failing to advocate critical pro-consumer changes in other rail issues. 

“Exclusive tie-in agreements and the existing “bottleneck” rule are at the core of the abusive pricing power being exerted by the Railroad Monopoly, which is hurting the U.S. economy and costing American jobs.

“The STB’s current rate challenge process is also far too burdensome to consumers and too often protects the needlessly expensive rates paid by American businesses who have no access to the rail competition that was the promise of the Staggers Act.

“RSTAC’s recommendations are helpful but don’t go nearly far enough for consumers.  Fortunately, Congress has already demonstrated bipartisan interest in restoring fairness to railroad pricing by removing the monopoly protections that railroads have been exploiting.  We're hopeful forthcoming Senate Commerce Committee legislation will address all of the barriers to competition as well as the rate challenge process."

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Working Together to Promote Rail Competition