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The chair of the US Surface Transportation Board (STB) has lambasted the Class I rail carriers over their lack of growth, and admonished them after accusations of retaliation against clients that openly criticised them.

Last week, Robert Primus stated he had “frequently heard concerns about retaliation by rail carriers against shippers and others who participate in the board’s regulatory proceedings”.

These retaliatory actions range from actual or threatened increases in rail transport rates and cutbacks in local service, to refusal to provide new services upon request, said Mr Primus, adding that shippers had also reported that railway representatives had admonished them for taking complaints to the STB.

“While I am not suggesting that most railroads engage in retaliatory acts or threats in response to shipper engagement with the agency, enough concerns have been raised that I believe it is important to remind the industry that the board has already made clear several times over the years that it does not tolerate retaliation.

“Shippers must be able to participate in board processes, both to protect their rights and to provide information to the board that is important to our mission, without fear of retaliation,” said Mr Primus.

He added: “Credible claims brought to the board should be investigated and appropriate actions taken against carriers that engage in unlawful retaliation, including, where appropriate, referring such complaints to the US Department of Justice.”

Mr Primus did not provide any specific examples of retaliatory action, as rail industry veteran Frank Wilner noted in Railway Age, and pointed out that such submissions were in the public domain.

Perhaps the STB chair did not want to distract from the broad message by shining a spotlight on individual carriers, or he wanted to shield rail clients on the receiving end of such action, but he did not explain his reasons for not backing up his statement with examples.

According to Mr Wilner, such unsubstantiated accusations could “seed and fertilise arguments for sunsetting the STB by a new administration desperate for budget cuts”. and he also noted that Mr Primus’s tenure at the helm of the agency could be cut short by the new administration nominating a successor.

The STB chair’s issues with the rail carriers go beyond treatment of shippers who take grievances to the agency. In a speech the same day, he also decried the lack of growth in rail traffic.

Between 2003 and 2023 intermodal tonnage moved on trucks rose 35%, whereas intermodal rail tonnage shrank 16%, he noted.

According to him, the decline of rail is down to five reasons: inconsistent and unreliable service has caused shippers to abandon rail; high rates not commensurate with the level of service provided; the Class I rail carriers lag the trucking sector in terms of providing accurate information on service and schedules; employment levels are insufficient to handle growth; and short-term gains are prioritised at the expense of expanding network growth.

These arguments pick up the criticism of precision scheduled railroading, which established the operating ratio as the most important measure of a rail carrier’s performance. Critics have argued that this prioritises short-term gains for shareholders over sustained growth.

“The network must have an adequate labour force and be more resilient, and we need to shift our focus from short-term profits to long-term sustainable growth,” argued Mr Primus, adding that the US short lines had performed such a shift, and achieved double-digit volume growth.

But, with a new administration in Washington, his blast could well turn out to be a charge of a Light Brigade.

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