Washington — The Fertilizer Institute (TFI) on May 13 sent a letter to the House Committee on Transportation and Infrastructure urging support for policies that will promote greater competition between railroads and improve the efficiency and effectiveness of the Surface Transportation Board (STB). The letter from TFI President Chris Jahn was also delivered to the Subcommittee on Railroads, Pipelines, and Hazardous Materials, and urged House support for legislation similar to the Surface Transportation Board Reauthorization Act of 2015 (S.808), which was recently approved by the Senate Committee on Commerce, Science, and Transportation. “Today, there are seven Class I rail carriers, of which four control over 90 percent of the U.S. market,” Jahn said in the letter. “Rail industry consolidation and a lack of competition amongst rail carriers and from other modes of transportation have provided the rail industry with strong market power. For example, motor carriers are typically a noncompetitive and undesirable option for shippers that need to transport products over long distances, especially when it comes to hazardous materials.” Specifically, TFI urged support for legislation requiring the STB to update standards for the rate review process based on revenue adequacy, and to include fertilizer in the STB’s proposed rulemaking related to service reporting requirements. “As a shipper, we also want the STB to be more balanced, efficient, and effective in protecting rail customers in those situations where railroads possess substantial market power,” Jahn said. “It has been 20 years since Congress authorized the STB. After 20 years, it makes sense for Congress to consider ways to modernize the agency with the ultimate goal of benefiting all stakeholders.”
Transparency Across the Fertilizer Value-Chain