NACD Opposes railroad limits on common carrier obligation.

Press Release Summary:



National Association of Chemical Distributors (NACD) filed comments with the Surface Transportation Board in response to a petition from the Union Pacific Railroad Company to determine the extent of common carrier obligation to transport chlorine over long distances. They opposed UP's request and argued that if this exception is granted, the entire common carrier obligation to transport toxic inhalation hazards will be threatened.



Original Press Release:



NACD Submits Comments to Surface Transportation Board in Opposition to Railroad's Request for Limits on the Common Carrier Obligation



The National Association of Chemical Distributors (NACD) today filed comments with the Surface Transportation Board (STB) in response to a petition from the Union Pacific Railroad Company (UP) to determine the extent of common carrier obligation to transport chlorine over long distances. In this particular case, UP questions whether it should be forced to quote rates to a shipper to transport chlorine from Utah to the Gulf Coast, when this would require transportation over a long distance through High Threat Urban Areas when ample chlorine supplies are available closer to the Gulf Coast region.

NACD's comments oppose UP's request and argue that if the railroad is granted this exception, the entire common carrier obligation to transport toxic inhalation hazards (TIH) will be threatened. NACD Vice President of Government Affairs Jennifer Gibson wrote, "The common carrier obligation exists for the specific purpose of requiring the railroads to provide service to shippers when they would otherwise choose not to do so because it would be unprofitable or inconvenient. Given the monopolies that the major railroads enjoy in many areas, the common carrier obligation is the only recourse that shippers have to ensure they are able to receive the rail service they need to safely and efficiently transport their products, particularly hazardous materials."

The comments discuss the market disruptions that would occur if railroads were granted exceptions to the common carrier obligation, pointing out that heavy demand in the Gulf Coast region routinely requires that chlorine be shipped in from other parts of the country, and the problems that would arise if the transportation of more TIH materials were to be shifted from rail to truck.

The comments also object to UP's argument it should not be required to transport chlorine over long distances because of pressure from other government agencies to reduce TIH transportation risks. "Congress has delegated the role of ensuring that hazardous materials are transported safely and securely to the U.S. Department of Transportation and the U.S. Department of Homeland Security, not the STB. In fact, both DOT and DHS have taken many steps in recent years to enhance the safety and security of the transportation of hazardous materials by rail, particularly TIH materials," Gibson wrote.

To view the full comments, go to www.nacd.com/advocacy/comments.aspx.

NACD and its nearly 250 members have established themselves as leaders in health, safety, security, and environmental performance through implementation of the Responsible Distribution Process (RDP), established in 1991 as a condition of membership in NACD. Incorporated as a condition of membership in January 1999, NACD members undergo third-party on-site RDPV - RDP Verification. For additional information, visit NACD's Web site - www.nacd.com.

Contact: Kathee E. Baker
703/527-6223, ext. 3042
kbaker@nacd.com

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