Summary
Federal regulators are concerned about a significant decline in rail freight volumes, citing a 28% drop over the past decade. The Surface Transportation Board (STB) has called for a public hearing with major freight railroads to discuss strategies for growth and investment. The hearing will include testimony from railroad customers, suppliers, and labor representatives. The STB is particularly interested in the railroads' plans for short-, medium-, and long-term growth and how they plan to increase shippers' use of rail. The hearing aims to address challenges and explore solutions for reversing the decline in rail freight volumes.
Bullet Points
- Federal regulators are concerned about a 28% decline in rail freight volumes over the past decade.
- The Surface Transportation Board (STB) has scheduled a public hearing on September 16-17 to discuss railroads' growth and investment strategies.
- The hearing will include testimony from railroad customers, suppliers, and labor representatives.
- The STB is interested in plans for short-, medium-, and long-term growth and increasing shippers' use of rail.
- The decline in rail freight volumes was highlighted by a Federal Reserve report showing a 28% drop from May 2014 to May 2024.
- The hearing is considered unprecedented and aims to address the challenges and effects of failing to grow rail freight.
- Railroads like BNSF, Canadian National, Canadian Pacific Kansas City Limited, CSX, Norfolk Southern, and Union Pacific Railroad are expected to present their plans.
- The hearing also aligns with the Biden administration's goal of reducing pollution and greenhouse gas emissions by increasing rail traffic.
- Short-term rail volume growth is uncertain due to stagnant consumer demand and concerns over high food and gas prices, political instability, and global conflicts.
- The hearing is seen as both a regulatory and political move by STB Chairman Robert Primus to push railroads toward growth and support the administration's environmental goals.