Dry Land Merrimac

Dry Land Merrimac

Sunday, January 2, 2011

Should railroads be considered the main channel of transportation

   I believe that the expanded use of our railroads is a critical component to the continued economic well-being of the United States and the preservation of our energy and natural resources.  This system is the epitome of all means of transportation, concerning fuel emissions, cost effective strategies, safety of products, and the advancement in human transportation.  Railroads provide more than 40 percent of intercity freight transportation, which is more than any other mode of transportation, and employ over 164,000 people. Freight rail is now and should continue to be the more suitable option for shipping.  

   However, the current lack of competition resulting in discontinuation for many companies, which is why a consolidation in the railroad industry occurred.  This leaves 4 major Class 1 railroads to carry 90 percent of our nations freight.  And is the reason for such a vulnerable, and unreliable system at times.  

   Utilities, paper mills and the agricultural indusrty, among others, have been subject to the rail carriers' rising service costs, yet these groups have not seen a increase in the service and reliability of their shipments.   This is a result of the minimal railroad organizations.  Furthermore, the increased costs are passed along to consumers through the costs of products, electricity, and services.  

      Repealing the railroads antitrust exemptions, would permit the Justice Department and Federal Trade Commission to review railroad mergers under antitrust law and it would eliminate anti-competitive exemptions for mergers, purchaces, collective percentage and coordination among railroads. This bill will not fix all of the problems with the railroad industry. But, it will be a starting point for a foundation of rational negotiations between the railroads and shippers. And, it will restore some of the public interest responsibilities to our nation’s rail system.

No comments:

Post a Comment