ACC encourages increase in rail capacity.
Press Release Summary:
Surface Transportation Board held public hearing to discuss issues related to US rail traffic forecasts and infrastructure requirements. Members of ACC depend on rail industry for safe transportation of 170 million tons of product each year, accounting for more than $5 billion in annual railroad revenues. ACC's Senior Director of Distribution, Tom Schick, stated that it is important to meet growing demand for freight transportation services to maintain strong economy.
Original Press Release:
Increased Rail Capacity and Competition Essential to Strong Economy in the U.S.
ARLINGTON, VA (April 11, 2007) - Today, The Surface Transportation Board (STB) held a public hearing to discuss issues related to U.S. rail traffic forecasts and infrastructure requirements. Members of the American Chemistry Council (ACC), the nation's leading chemical manufacturers, depend on the U.S. rail industry for reliable, safe, secure and efficient transportation of approximately 170 million tons of product each year. This traffic accounts for more than $5 billion in annual railroad industry revenues.
While railroads are earning record profits, rail customers across the country are not receiving reliable rail service at reasonable rates. Considering this backdrop, rail customers believe it is only reasonable that any effort to address capacity and infrastructure issues also be part of a comprehensive policy that also promotes reliable rail service, competition and addresses unreasonable rate practices.
ACC's Senior Director of Distribution, Tom Schick, testified at today's hearing and issued the following statement:
"Our members are well aware of the continuing growth in demand for freight transportation services - including rail traffic - in the United States. To the extent there is a shortage of capacity to serve all categories of rail traffic - especially freight that is paying the highest rates - it is important to meet those needs in the interest of maintaining a strong U.S. economy.
"The rail industry's ability to meet demand should be a matter of concern to the STB, but it should not become the rationale for actions that would harm shippers or continue to shield the railroads from competitive economics. In the long run, government protection from market forces weakens any industry.
"The business of chemistry competes in a fierce global marketplace, and our members are stronger because they must operate that way. We believe that it would be unfortunate if current concerns about rail capacity and infrastructure were used to increase the Surface Transportation Board's tendency to protect the railroads from the consequences of competing in the real world.
"We urge the STB to take a pro-competitive approach to the many important issues that Congress has entrusted it with regulating."
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Contact: Scott Jensen (703) 741-5834
Email: scott_jensen@americanchemistry.com
