More Oversight of U.S. Railways Sought

WASHINGTON - Oct 18/05 - SNS -- More regulatory oversight of the U.S. rail system is needed to ensure agriculture's long term capacity needs are met, argues the National Grain and Feed Association (NGFA) in testimony it will give tomorrow about before a Surface Transportation Board (STB) public hearing on the 25th anniversary of the Staggers Rail Act.

NGFA representatives will argue the law had several positive outcomes, such as improving railroads' profitability and flexibility to better compete for freight business with other modes.

But the NGFA said carriers have used that flexibility to concentrate an increasing share of rail assets into certain types of highly profitable traffic in a way that has raised "major concerns about the future of rail service and the ability of U.S. agriculture to compete for needed rail freight capacity…at reasonable rate and service levels."

The NGFA said deregulation resulting from enactment of the Staggers Rail Act in 1980 led to substantial rail consolidation, with a "sharp reduction" in competitive routes and options for shippers and receivers of bulk commodities. During the same time span, the volume of commercial rail shipments of grain and other bulk agricultural commodities declined from 50% to 35%

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