Railroads might have to let rivals serve their customers

FILE - In this Thursday, Oct. 10, 2013, file photo, a freight train travels south alongside Highway 99 near Livingston, Calif. Freight railroads might be forced to allow rivals to serve some customers along their tracks under a new proposed rule, announced Wednesday, July 27, 2016. Federal regulators say that if shippers can show they don’t have many shipping options and can meet certain conditions, they should be able to get bids from competing railroads to haul their products. Railroads say the rule is unneeded and would make shipments less efficient. (AP Photo/Rich Pedroncelli, File) FILE - In this Thursday, Oct. 10, 2013, file photo, a freight train travels south alongside Highway 99 near Livingston, Calif. Freight railroads might be forced to allow rivals to serve some customers along their tracks under a new proposed rule, announced Wednesday, July 27, 2016. Federal regulators say that if shippers can show they don’t have many shipping options and can meet certain conditions, they should be able to get bids from competing railroads to haul their products. Railroads say the rule is unneeded and would make shipments less efficient. (AP Photo/Rich Pedroncelli, File)

By Associated Press July 28, 2016 2 min read

OMAHA, Neb. (AP) – Freight railroads could be forced to allow competing railroads to serve some customers along their tracks if federal regulators approve a new rule.

The Surface Transportation Board’s proposed rule would only apply to certain companies that don’t have many shipping options. The companies that have been fighting for this change since 2011 praised Wednesday’s announcement while railroads decried the proposal.

President and CEO Cal Dooley of the American Chemistry Council said the new rule should help keep freight rail and manufacturing healthy.

“We welcome STB’s decision to move forward on competitive switching, which will help put the marketplace back in the driver’s seat and improve the flow of goods throughout our economy,” Dooley said.

The proposal to force railroads to allow some manufacturers to hire a competing railroad to haul their products has been championed by the National Industrial Transportation League.