Rail
The shortage of transportation capacity affects the forest products industry. In addition to the difficulty of moving raw materials to mills, moving products to customers is increasingly difficult and costly.
Rail customers are not receiving reliable rail service at reasonable rates. It is estimated that 30 percent of forest products facilities have access to only one rail carrier. The railroad industry has an obligation to serve its customers and the nation’s freight rail needs, but many see their monopoly status as an opportunity to charge excessive rates while providing poor service.
As a member of the Consumers United for Rail Equity (CURE) group, AF&PA supports legislation to reform the Surface Transportation Board (STB), which regulates the nation’s railroads, but which is ineffective in addressing rail service problems. CURE and AF&PA also support legislation removing current special railroad exemptions from the nation’s antitrust laws.
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AF&PA supports removing railroads' exemption from antitrust laws. The current special antitrust exemption allows freight railroads to avoid competition and keep their rates artificially and unfairly high. These unjustifiably high rates are a hidden tax on consumers, inflating prices on everyday items such as food, electricity, paper, and manufactured goods.
- AF&PA supports reforming the STB, which is failing in its mission to ensure competition and protect rail customers from railroad monopoly power. Impediments to competition adversely affecting rail customers need to be removed.
- AF&PA acknowledges the need for investment in rail infrastructure. However, any tax credit granted to the railroads through Congressional action needs to address domestic captive shipper concerns.
The Time for Change Is Now
AF&PA requests support for rail competition and service improvement legislation, as well as railroad antitrust enforcement bills. Shippers who rely on railroads need relief from decreasing quality of service, increasing costs and an ineffective railroad regulatory body.