Skip to main content
U.S. Department of Energy
Office of Scientific and Technical Information

Railroad competition and rate making: the implications for industrial coal prices

Technical Report ·
DOI:https://doi.org/10.2172/5270504· OSTI ID:5270504
As the railroad industry, which is the primary transportation mode for coal, enters the 1980s, two factors are significantly altering the way in which railroads do business, particularly in relationship to shippers who must rely solely on rail. The first factor, railroad deregulation, is embodied in the provisions of the Staggers Rail Act of 1980 (PL96-448). The second factor affecting rail transportation for industrial coal users is the trend toward rail mergers and consolidations, in some cases due to financial problems. This trend, coupled with the willingness of government to allow major bankrupt carriers such as the Rock Island and the Milwaukee Road to be liquidated in whole or in part, is resulting in fewer railraods with increased market power. Discussed in this report are: the impacts of railroad deregulation on industrial coal users; the effects of railroad consolidations on the bargaining power of coal producers, receivers and railroads; and finally, strategy and tactics for industrial coal users to maximize their leverage weight in obtaining efficient coal transportation at reasonable rates. (DMC)
Research Organization:
Argonne National Lab., IL (USA); Teknekron, Inc., Berkeley, CA (USA)
DOE Contract Number:
W-31109-ENG-38
OSTI ID:
5270504
Report Number(s):
ANL/EES-TM-173; ON: DE82015663
Country of Publication:
United States
Language:
English