In a joint effort to address the ongoing challenges of unreliable rail service and high shipping costs faced by American businesses, U.S. Senators Tammy Baldwin (D-Wis.) and Roger Marshall (R-Kan.) have reintroduced the Reliable Rail Service Act. Supported by various industry stakeholders, including agriculture, labor, energy, and manufacturing organizations, the legislation aims to bring about much-needed improvements in the freight rail sector. Although the original bill was introduced in September 2022, it stalled in progress, prompting its revival.
The pressing issue at hand is the continued struggle of rail shippers, encompassing farmers, energy producers, and manufacturers, who grapple with inadequate service, disruptive operations, and soaring prices that negatively impact communities and consumers. Notably, the nation’s major railroads have been reaping record profits during this time.
In a news release, Senator Baldwin emphasized the significance of reliable rail service for businesses in her home state, Wisconsin. She asserted that “Made in Wisconsin” products should not be subject to exorbitant fees for subpar rail service. Ensuring dependable rail service for agricultural, energy, and manufacturing enterprises is crucial to level the playing field for Wisconsin businesses and reduce costs for working families. Thus, the reintroduction of the Reliable Rail Service Act is seen as a vital step towards sustaining Wisconsin’s thriving economy.
Senator Marshall echoed similar sentiments, stating that he frequently hears complaints from Kansans about the subpar service provided by Class 1 railroads. These service failures significantly impact shippers who rely on rail transportation to reach key export facilities. He emphasized the need to modernize the Staggers Act of 1980, which governs railroad’s common carrier obligations, and expressed a willingness to collaborate with Senator Baldwin to find bipartisan solutions.
This issue has garnered widespread attention, with shippers voicing their frustrations with the U.S. railroads for an extended period. The National Grain and Feed Association (NGFA) made an urgent plea to the Surface Transportation Board (STB) in March 2022, urging them to address significant rail service disruptions that were negatively affecting the nation’s supply chains. In response, the STB summoned executives from four Class 1 railroads to a public hearing in April 2022 to address the poor rail service.
Fast forward to June 28, 2023, and the reintroduced Reliable Rail Service Act takes a pragmatic approach to tackle high costs and unreliable service. It seeks to clarify the common carrier obligation, ensuring rail carriers serve the broader shipping public reasonably and on request. The bill establishes specific criteria for the STB to assess whether carriers meet their common carrier obligation, offering much-needed certainty to shippers.
The reintroduction of the Reliable Rail Service Act has received broad support from 50 agricultural, labor, manufacturing, and transportation organizations. Stakeholders, such as the Wisconsin Farm Bureau Federation, the National Grain and Feed Association, and the Transportation Trades Department, AFL-CIO, have praised Senators Baldwin and Marshall for their leadership in addressing rail service issues and supporting the legislation.
With the backing of various industry players and a renewed bipartisan effort, the Reliable Rail Service Act aims to bring about positive changes in the nation’s freight rail network, ensuring a more efficient and reliable transportation system for American businesses and consumers alike.
