Hearing of the Senate Commerce, Science and Transportation Committee - Nomination Hearings

Hearing

"Today we will consider the nominations of Daniel Elliott to be a Member of the Surface Transportation Board (STB) and Mario Cordero to be a Commissioner at the Federal Maritime Commission (FMC). Both nominees have either served or are serving their respective independent agencies as chairmen, and both have previously been confirmed by the Senate by voice vote.

"As the Committee knows well, the STB plays an important role as the independent federal agency with regulatory authority over freight railroads. Among other things, the STB is charged with resolving railroad rate and service disputes and reviewing proposed railroad mergers.

"Mr. Elliott previously joined the STB as its chairman in 2009. During his tenure, he worked on important policy questions concerning competitive access, class exemptions from regulation, revenue adequacy and rate regulation. These are complex and interrelated issues that this Committee and various stakeholders believe that the board must confront more effectively. That is why I have worked with Ranking Member Nelson to pass a bill out of this Committee that would reform the STB, known as the STB Reauthorization Act of 2015 (S. 808). Among other things, our bill would allow Board members to speak to one another, and improve the Board's ability to function as Congress intended since it was established in 1995 as the successor to the Interstate Commerce Commission. Our bill would also allow the board to initiate some investigations, not just respond to complaints, and would require the STB to establish a database of pending complaints and prepare quarterly reports on them.

"I'm hopeful that the Senate will be able to pass this bipartisan STB reform bill in the near future.

"Turning to our other nominee before us today, Mario Cordero joined the FMC in 2011, and has served for the last two years as chairman. The FMC is the regulator tasked with maintaining an efficient and competitive international ocean transportation system, protecting the public from unlawful, unfair, and deceptive ocean practices, and resolving shipping disputes. The FMC also conducts oversight of marine terminal operators, and the agency played a role in resolving the severe port congestion on the West Coast that languished for nearly ten months and caused billions in economic losses to businesses and our economy earlier this year. As chairman, however, Mr. Cordero has also inherited some challenges with FMC personnel issues. For example, a recent Inspector General workplace evaluation report noted that FMC employees feel legacy leadership challenges at the agency have left a negative imprint on the organization that has not been fully resolved.

"I will be asking Mr. Cordero about these issues today and some of the other challenges the FMC is faced with regarding globalization and the increasing strain being experienced at our nation's ports.

"While we must fulfill our obligation to carefully conduct oversight of these nominees and related independent agencies, I also recognize the complexities that exist when it comes to the challenges they face. We appreciate your willingness to serve in these important positions and I look forward to your testimony today.

"I turn now to the distinguished ranking member, Senator Nelson, for any remarks he would like to make."

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