MARKET BRIEFS: REGULATORY UPDATE
On Dec. 17 the Senate Com- Transportation Board, which is responsible environment. In particular, he cited provi-
merce, Science and Transportation Commit- for providing regulatory oversight of freight sions of the bill that would require the STB
tee approved bill S. 2889, which is viewed railroads. It also would improve competi- to establish a binding arbitration system to
as the most significant freight rail legislation tive conditions and transparency in the rail resolve rail rate, rail practice and common-
since Congress enacted the Staggers Rail industry and result in meaningful relief for carrier service complaints from shippers;
Act in 1980. The National Grain and Feed agricultural rail shippers and receivers, they empower the STB to launch investigations
Association said the bill likely will undergo said. Further, the organizations said the bill of rail practices; require rail carriers to
additional fine tuning before being consid- would provide improved mechanisms and publish reasonable service expectations for
ered on the Senate floor, including potential greater opportunity for agricultural shippers shippers relying on common-carrier rates;
language that could modify the railroads’ and receivers to challenge rail rates, service increase the amount of damages shippers
antitrust exemption. and rail practices that they believe to be could collect from carriers if prevailing
The NGFA joined 15 other national agri- unreasonable. in unreasonable freight rate cases under
cultural producer and agribusiness organiza- NGFA President Kendell W. Keith noted streamlined procedures; and revise the
tions in commending action by a key Senate that while the Senate bill does not contain all national transportation policy to place more
committee on the significant rail reform bill. the changes to U.S. rail policy advocated by emphasis on the importance of rail com-
On Dec. 16 the groups had notified the NGFA, it does provide some meaningful petition, prohibiting predatory pricing and
the Senate Committee that the bill would corrections to current law and hopefully will ensuring reasonable freight rates where rail
“bring needed reform” to the federal Surface set the stage for a more balanced regulatory competition is lacking.
The agricultural producer and agribusi-
ness organizations also commended Senate
Commerce, Science and Transportation Com-
mittee Chairman John D. “Jay” Rockefeller
IV (D-WV), and Ranking Member Sen. Kay
Bailey Hutchinso