As the U.S. Surface Transportation Board attempts to become more effective and viable, one of the first tasks on the docket is to allow rail customers to engage in competitive switching.

According to the letter: “The Board’s competitive switching proposed rule would allow rail customers with no competitive rail service or other modal options to request to have their freight moved to a nearby rail line, for a fee, if another Class I railroad is reasonably accessible. Competitive switching is expressly allowed by statute, but it has never been permitted by the STB because of overly restrictive regulations at the Board.”

The letter points to the success of competitive switching in Canada as proof that a competitive railroad environment actually increases revenues, efficiency and infrastructure. Read the letter.

IWLA will continue to stay on top of the outcome of this rule.