STB withdraws freight rail preference proposal

The Surface Transportation Board last week issued two decisions in passenger rail proceedings, one of which included the withdrawal of a previous proposal that would have allowed railroads to prioritize cargo operations over Amtrak passenger trains.    The U.S. Surface Transportation Board (STB) last week withdrew a proposal that would have allowed railroads to prioritize cargo operations over Amtrak passenger trains.
   STB initially argued that its proposed freight preference policy would make the nation’s railroad system more efficient, but has since decided to address these “complex” situations on a case-by-case basis.
   The Association of American Railroads (AAR) supported the STB’s proposal to give railways the ability to prioritize freight trains over passenger trains, while Amtrak opposed the change in policy, maintaining it would impair on-time performance for passenger operations.
   According to Amtrak, under the current laws, it has absolute preference, which means that the freight railroads that host Amtrak trains on their lines must pull their trains off the main track or hold them at a station to allow passenger trains to pass. The freight railroads, on the other hand, interpret the law differently, defining “preference” for Amtrak as a balance between the two parties’ needs while still prioritizing on-time performance for both.
   STB in December issued an initial proposal that sought to define the term “preference” and at the time seemed to be leaning toward the latter interpretation.
   The board noted in its decision that Amtrak argued any definition of preference that considers the quality of service to freight shippers would “conflate the definition of preference with the statutory provision that allows a host carrier to seek relief from its preference obligation by demonstrating that preference would materially lessen the quality of freight transportation provided to shippers.”
   “In light of the broad disagreement among the interested parties regarding the conceptual basis for § 24308(f) investigations, the Board finds that going forward with its Policy Statement would not advance its original goal of facilitating a more efficient and effective implementation of § 24308(f) proceedings,” STB said. “To the contrary, continued efforts to develop the Policy Statement under these circumstances would unnecessarily delay the Board’s resolution of pending and future on-time performance investigations, the very opposite of the purpose in commencing this proceeding.”
   In addition, the board also issued a decision under which STB will consider on-time arrival and departure – no more than 15 minutes after a train’s scheduled arrival or departure time – at all stations along a passenger train’s route for purposes of assessing on-time performance.
   “Amtrak applauds the Surface Transportation Board’s decisions on on-time performance (OTP) and preference,” the company said in a statement. “The OTP and reliability of our service are major components of customer satisfaction and of critical importance to passengers in communities large and small. Amtrak looks forward to working closely with the STB and host railroads to ensure that passengers arrive at their destination on time, improving their travel experience while lowering Amtrak operating costs and increasing revenues.”
   “It is a disappointment that the STB has decided to add mid-point on-time performance measures, which could result in negative impacts for freight rail customers and consumers, but the freight rail industry will continue to work with Amtrak to provide dependable passenger service in the country,” said AAR spokesman Ed Greenberg, adding that the association will review the STB decisions to “evaluate our further legal options.”