Overdue:
The STB has been considering these reforms for more than a decade, with extensive input from all stakeholders.
Guardrails:
If the switch is shown to be unsafe or harmful to other customers, the railroad can block it. And there is no “free lunch” for the shipper—they would have to pay an appropriate “access” fee set by agreement between the railroads themselves.
Legal standing:
Congress allowed for switching to promote competition when it passed the Staggers Act of 1980 – and courts have subsequently supported its use.
Proven solution:
Canada has demonstrated that a similar approach can promote competition without harming the financial health of rail companies. In fact, two of the healthiest railroads in North America are based in Canada.
Supply chain:
In addition to removing barriers to competition, switching can open more service options and ease congested routes.
Already widely used:
Railroads use switching every day in the United States to move freight from one rail line to another - they just don’t like the idea of customers using it to get competitive bids.
Good Government:
Switching will unlock market forces and reduce the need for government intervention to resolve rate and service problems.
