WASHINGTON – The American Chemistry Council (ACC) submitted comments in support of the Surface Transportation Board’s (STB) reforms to promote greater freight rail competition by eliminating unwarranted restrictions on reciprocal switching.
For decades, and contrary to a clear directive from Congress, a single rule has blocked competition and left many shippers at the mercy of a single railroad even when another railroad was available via reciprocal switching. STB’s new proposal would repeal these overly restrictive standards and allow the Board to consider reciprocal switching requests on a case-by-case basis.
“The STB’s regulatory rollback supports President Trump’s push to bring manufacturing back home, strengthen our energy and agriculture sectors, and keep American made goods moving,” said Chris Jahn, ACC President and CEO. “America needs more rail competition, not more monopoly power. While the proposed UP–NS rail merger raises serious monopolistic concerns, the STB’s pro-competitive proposal moves the country in the right direction. ACC is ready to work with the Board to build a freight rail system that delivers for the U.S. economy.”
In its recent filing with the STB, ACC states that:
- Current rules are obsolete and no longer reflect today’s rail market.
- Freight rail consolidation—from 31 major carriers to just six—has created significant monopoly-like conditions for many rail dependent
industries.
- Removing these barriers will restore the STB’s ability to grant competitive access on a case-by-case basis using the authority that Congress
granted the agency. - The change is necessary to support U.S. manufacturing, agriculture, energy production, and supply chain resilience.
Ending these anticompetitive barriers is vital to countering decades of consolidation that choked off competition, hiked rail rates by 40 percent, and fueled service failures.
Last year the American Chemistry Council (ACC) provided comments to the Department of Justice’s Anticompetitive Regulations Task Force recommending that the STB rescind its restrictions on reciprocal switching. Particularly in light of President Trump’s Executive Order 14267 directing federal agencies to remove regulatory barriers to competition.
In addition to adoption of this critical reform to enhance competitive rail service, ACC looks forward to working with the Board to advance additional policies that strengthen America’s freight rail network.
