Market Matters Blog

Railroads, Shippers Weigh in on Making Weekly Reports Permanent

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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BNSF train moving east along the Northern Transcon. (DTN photo by Mary Kennedy)

OMAHA (DTN) -- Debate over how transparent railroad companies should be about their service performance continues as the Surface Transportation Board weighs whether to make weekly reports by Class I carriers a permanent requirement.

After a hearing in Fargo, North Dakota, on Sept. 4, 2014, where the board heard from shippers of grain, coal, ethanol and other commodities, the STB decided it was necessary to begin receiving data from the Class I rail carriers on their weekly service performance. In addition, the board in a decision issued on Dec. 30, 2014, directed the Association of American Railroads (AAR) to provide more information on progress in the Chicago Gateway. The AAR began providing reports on Jan. 14, 2015.

Also on Dec. 30, 2014, the STB issued a notice of proposed rulemaking, in which it proposed to make the weekly reports submitted by the Class I carriers a permanent requirement and make some modifications to the service metrics. Opening comments in that proceeding were received on March 2, 2015, and reply comments were due on April 29, 2015. Once all comments were received, the board stated they will then consider adopting final rules.

The weekly filings have allowed the board and rail stakeholders to monitor performance and have allowed the board to begin to develop baseline performance data. "Based on the board's experience with the reporting to date, the board is now moving forward with a rulemaking to determine whether to establish new regulations for permanent reporting by the members of the Class I railroad industry, and the Chicago Transportation Coordination Office (CTCO) through its Class I members," the STB said.

On April 29, the Alliance for Rail Competition (ARC), a group consisting of 16 various grain boards and commissions, submitted their reply comments urging the board to reject the railroads' arguments. "We also urge the board to implement its proposed rules, and to expand them by requiring reasonable reporting of service data the railroads already gather as to shipments involving less than 50 cars. Serious service problems continue to adversely affect many shippers represented by ARC, et al., including many shippers whose businesses depend on rail shipments of 49 carloads or less. These problems are particularly acute in the Upper Great Plains states, despite small improvements in service quality here and there." Here is the link to the entire comment by the ARC members: http://goo.gl/…

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The United States Department of Transportation (DOT) and the Federal Railroad Administration (FRA) said they appreciated the board's efforts to identify and address the challenges facing those who operate and depend upon the rail network. "A healthy and safe railroad system is critical not only to those who ship and receive goods, but to our nation as a whole." They stated that they generally support the board's proposal to require weekly reporting of rail performance data, but provided some additional thoughts for the board to consider in reaching its decision. Here is link to their comments on April 29: http://goo.gl/…

RAILROADS RESPOND

The AAR told the STB they acknowledged the service issues caused by "unforeseen shifts in demand for rail service and a historically difficult 2013-2014 winter season" that led the board to propose rules requiring Class I railroads to report operational data. However the AAR cautioned the board to distinguish between metrics that have been useful in monitoring the specific service disruptions that have occurred and metrics designed to monitor the overall fluidity of railroad operations that may be useful on an on-going basis. The AAR recommended that the board not make "permanent by regulation the reporting of metrics at a granular, commodity-specific level that may not be germane to a specific future service disruption while presenting a misleading view of rail service in normal times."

In their comments on April 29, The BNSF pointed out it has made significant progress in the first quarter of 2015 toward restoring velocity and meeting customers' expectations. "This is reflected in the reports and other tailored network performance information we regularly provide to our customers, as well as the interim reporting we have been providing to the board."

The BNSF told the board it has recognized there were several renewed requests from associations seeking more specialized reporting of service data, including corridor-specific and additional commodity-specific metrics. "The associations seek extensive additional reporting, ranging from expanded commodity-specific measures covering oilseeds, oilseed meal, fertilizer, and vegetable oil (a NGFA request) to average dwell times at each individual interchange for all empty coal unit trains (a Western Coal Traffic League request). Requiring BNSF to provide additional cuts of data for individual commodities or for specific geographic sub-levels on a regular basis would be burdensome and counterproductive to BNSF's efforts to maintain optimal flow across the entire network, consuming critical resources without significant commensurate benefit." Here is a link to the comments by the BNSF to the STB: http://goo.gl/…

Since the service issues in 2014 affected more than just grain shippers, coal and electric companies weighed in as well. "The railroads and the AAR generally urge the board not to adopt any reporting standards at this time or to severely limit any reporting if the board insists on moving forward," they said. "Alternatively, the railroads propose unnecessary delaying tactics, such as meetings with the board where the railroads can privately detail what data they might be willing to regularly report." The coal shippers and National Rural Electric Cooperative Association told the board they support the proposal which, "should ensure that accurate, timely, and complete data reporting remains available to shippers and the board alike, and they repeat their initial request that the board consider certain refinements to the proposal, as well as additional reporting categories."

The STB has not provided a date as to when the final decision on when the Dec. 30, 2014, proposed rule will be issued.

Mary Kennedy can be reached at mary.kennedy@dtn.com

Follow Mary Kennedy on Twitter @MaryCKenn

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