What are your thoughts on recent Surface Transportation Board Actions? (Tony Hatch - ABH Consulting)

20161212 Tonyhatch (Cropped)

Recently there have been four STB (Surface Transportation Board) actions and 2 related ones in the ongoing battle of “RRs vs. DC” worth commenting on:

  1. CA Congresswoman Katie Porter, who should know better, sent a letter to the STB urging rejection of the CPKC citing rail consolidation (thereby creating those extraordinary powers that have allowed the rails to lose market share this decade. In addition, both Metra and the NS filed showing worry over what CPKC volume growth could do tho their operations in Chicagoland and the Meridian Speedway, respectively. And speaking of Chicagoland, the usual suburban town gang also reiterated their calls for rejection, or if not a heft mitigation settlement (is it wrong in the context of Illinois to say “bribe”?).  Bottom line:  The CPKC will be approved, don’t lose any sleep over this...

  2. The rail subcommittee of the House T&I Committee held a hearing ostensibly on “rail safety,” thereby allowing rail unions (in the middle of negotiations and with an eye to congressional opinion, remember) to bash rails and PSR. The Federal Railroad Administrator to further show his cards (predicting initiating a rule mandating two-man crews while his government--his own DOT--continues to subsidize driverless trucking). One major focus was on the safety impact of longer trains. The rails had a lone defender against the onslaught – NS’s COO Cindy Sanborn.  Bottom line:  This is symbolically more worrisome for the long term – the rails need to be free to utilize technological breakthroughs like car and track inspections (etc.) and this is (another) sign of fading momentum in the regard…