AAR: Independent Study Finds Rail Competition Working
1 Feb 2010
FOR IMMEDIATE RELEASE
For More Information Contact:
AAR Communications 202-639-2100
Holly Arthur harthur@aar.org
AAR: Independent Study Finds Rail Competition Working
'Christensen Study' Finds Recent Rate Increases Related to Cost, Not Market Power
WASHINGTON, D.C. – Feb. 1, 2010 – The Association of American Railroads today issued the following statement from President and CEO Edward R. Hamberger in response to the release of an independent study from Christiansen Associates Inc., of Madison Wis., on rail competition for the Surface Transportation Board.
"The report from Christiansen Associates validates that competition in the nation's railroad industry has been able to thrive for the last twenty-plus years under market-driven policies overseen by the Surface Transportation Board. During those years, we've been able to increase productivity and boost investments in our infrastructure whenever and wherever possible – and the result is a U.S. freight rail industry second to none in the world.
The report found that rate increases in recent years are in line with increased railroad costs. The report also concluded that government regulated lower rates for some shippers would likely result in rate increases for others, and threaten the industry's financial viability and ability to sustain investment in America's rail network. Railroads have been telling policymakers that what they need is certainty, especially during times of such economic uncertainty.
Rail is critically tied to enabling the nation's economic recovery. It is objective perspective such as this study that shows the system is working – and now is not the time, when so much is at stake, to jeopardize the health of America's railroads, so well positioned for growth and delivering increased public benefits."
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Editors' Note: The Association of American Railroads (AAR) is the world's leading railroad policy, research and technology organization focusing on the safety and productivity of rail carriers. AAR members include the major freight railroads, or Class I railroads, of the U.S., Canada and Mexico, as well as Amtrak. Class I railroads represent 67 percent of the U.S. freight rail mileage and 90 percent of freight railroad industry employees. Railroads account for 43 percent of intercity freight volume — more than any other mode of transportation. For more information, visit www.aar.org or follow us on Twitter: AAR_FreightRail.