Issue Position: Transportation - Freight Rail

Issue Position

I believe that the expanded use of our rail infrastructure is a critical component to the continued economic well-being of the United States and the conservation of our energy and natural resources. Railroads provide more than 40 percent of intercity freight transportation, more than any other mode of transportation, and employ over 164,000 people. Freight rail is now and should continue to be the preferable option to shipping via our nation's highways.

However, the current lack of competition resulting from the railroad antitrust exemption has resulted in dramatic consolidation in the railroad industry. Only four major Class 1 railroads carry 90 percent of our nation's freight, often providing unreliable service at exorbitant fees, while railroads reap record profits. Utilities, paper mills and the agricultural sector, among others, have been subject to the rail carriers' rising service costs, yet these groups have not seen a corresponding increase in the service and reliability of their shipments. Moreover, the increased costs are passed along to consumers through the costs of products, electricity, and services.

I am the lead sponsor of the Railroad Antitrust Enforcement Act, which would repeal the railroad antitrust exemptions. It would permit the Justice Department and Federal Trade Commission to review railroad mergers under antitrust law and it would eliminate antitrust exemptions for mergers, acquisitions, collective ratemaking and coordination among railroads. The bill also would allow state Attorneys General and other private parties to sue for treble damages and to sue to halt anticompetitive conduct, both of which are not currently allowed under federal law.

This bill will not fix all of the problems with the railroad industry. But, it will be a starting point for good faith negotiations between the railroads and shippers. And, it will restore some of the public interest responsibilities to our nation's rail system.

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