Undermining railroad investment is a dangerous risk that could eventually lead to underperformance by railroads, produce financial losses, and increase market shares for the trucking industry. As trucking increases, environmental concerns increase along with congestion and added pollution. Compared to trains, trucks create three times more pollution per ton. By one estimate, taxpayers will face […]
The Surface Transportation Board has recently proposed regulations that would control the prices and earning of railroad carriers. The regulations, however, are eerily similar to those previously repealed that devastated the rail industry nearly 50 years ago. The American Consumer Institute recently released a report on these newly proposed policies stating, in a nutshell, that the current proposed […]
America’s railroads provide cost-effective freight transportation for consumers and thousands of jobs for workers—all while generating a fraction of the emissions of its competitors. These benefits are the product of deregulation in the 1980s that slashed inefficiency and brought the railroads back from the brink of collapse.
However, a new report highlights how these public benefits are once again coming under pressure from proposed onerous regulations. History shows that price setting and regulatory meddling will eventually extinguish the benefits that rail transportation affords.
For much of the 20th century, federal regulators tightly controlled the railroad industry, including rail investment and prices. By the 1970s, several major carriers were on the verge of bankruptcy, and lawmakers, facing the prospect of costly bailouts, acted boldly and repealed onerous regulations, allowing market forces to re-energize the industry. In the 40+ years […]
With the upcoming Surface Transportation Board hearings (on December 12th and 13th), ACI joined a coalition to call on Congress to resist attempts to increase rail regulations, which would only served to increase consumer prices and reduce industry investment. The coalition letter is available online.
The U.S. Senate seems poised to confirm three new members to the five-person Surface Transportation Board (STB), the agency responsible for regulating our nation’s railroads, including companies like CSX and Norfolk Southern in Pennsylvania. These nominations have been stalled for months, diminishing the STB’s ability to fulfill its mission to help ensure the free flow […]
Slated to join the U.S. Surface Transportation Board (STB), the primary agency tasked with overseeing the financial functions of private U.S. freight railroads that maintain an outsized presence in Chicago, is former Metra Chairman Martin Oberman. If confirmed – likely in the lame duck session in the U.S. Congress – Oberman will need to deal […]
The Surface Transportation Board (STB) is considering rules that could drive up consumer costs and is unnecessary. If confirmed by the Senate in the next few weeks, the incoming members of the STB should recognize the lessons of history and oppose any effort to expand the use of forced access in the railroad industry. To read […]
Analysis Finds Proposed “Forced Access” Regulation Would Hurt American Consumers and Stifle Rail Industry Investment WASHINGTON, D.C., October 24, 2018 – The American Consumer Institute Center for Citizen Research (ACI) released today its latest report, which calls on the Surface Transportation Board (STB) – the economic regulator for freight railroads – to reject a proposed regulation […]
A powerful coalition of businesses recently sent a letter to President Donald Trump, urging action from his administration and the U.S. Senate to fill vacant commissioner positions at an obscure yet powerful federal agency known as the Surface Transportation Board (STB). An independent agency tasked with oversight of the business dealings of freight railroads and […]