Following the lead set by BNSF Railroad in response to proposed security regulations for the shipment of “toxic by inhalation” (TIH) products such as chlorine and anhydrous ammonia, CSX Railroad will increase all direct and joint line rates on anhydrous ammonia shipments, effective July 1, 2007.
According to the Agricultural Retailers Association, the CSX increases will range from 25-35 percent, and will be in addition to the general 11.5 percent increase on all CSX’s fertilizer rates that took effect on April 23, 2007, when the railroad converted its fuel surcharge from a percentage basis to a mileage basis.
ARA said other U.S. Class 1 rail carriers are likely to implement similar measures to comply with the proposed security regulations, which were announced on Jan. 22 by the Transportation Security Administration (TSA), a division of the Department of Homeland Security (GM Feb. 5, p. 1). Included in the regulations are provisions that require receivers to accept TIH cars immediately upon arrival, prohibit outbound TIH cars from being held in rail yards or other rail facilities awaiting billing, and require security personnel to be present whenever TIH cars are spotted or pulled from customer facilities.
In addition to requiring “documented chain of command handoffs” all along the distribution route, the regulations also identify security procedures for any rail operation that ships or receives TIH materials, and provide for close coordination between TSA and other federal agencies for proper enforcement. TSA Deputy Administrator Robert Jamison said in December that putting the proposed tracking rules in effect would cost the rail industry $162 million over 10 years.
BNSF was the first to announce TIH policy changes in response to the security regulations, including new tariffs on certain anhydrous and chlorine rail shipments (GM April 16, p. 13). Effective May 1, BNSF implemented a new demurrage and private car storage policy for TIH shipments, specifying that railcars containing TIH commodities that are “constructively placed on BNSF tracks” will be subject to a $500/car charge for the first 24 hours or portion thereof, and a $1,000/car charge or portion thereof for each day thereafter until space is made available. These charges will be assessed against the receiver of the product, and apply only to BN (Class 1) trackage and not to residue cars.
In a May 18 letter to BNSF Railway President Matt Rose, The Fertilizer Institute joined The Chlorine Institute (CI) and the American Chemistry Council (ACC) in opposing the new TIH tariffs, calling them “unreasonable” and “unwarranted” (GM May 28, p. 11). Claiming the policy would have “no effect on safety,” the organizations urged BNSF “to reverse this notice and instead to participate in the ongoing government and industry efforts at developing new car specifications based on performance requirements currently being defined.” The letter asks for a response by June 8.