Rail transport of western coal: the history of rail deregulation and its influence on western coal resource development; prospects for legislative change

Technical Report · Mon Apr 01 04:00:00 UTC 1985

OSTI ID:5801471

Smith, J N; Rose, R R

The one major cloud on the horizon for the future of western coal outside the region is the high cost of transportation. With rail transportation costs running as much as 75% of the delivered price to some of the Gulf States, the ability to keep rail costs in check becomes critical to the future of western coal. Four years of experience with deregulation of the railroads and the performance of the Interstate Commerce Commission (ICC) under the new regulatory environment have led many shippers and buyers of rail transported commodities to the belief that national legislation is needed to give better protection to shippers in monopoly service areas. A tentative legislative effort began in the last Congress. Proposals for rail rate relief for captive shippers are taking more formidable shape in the 99th Congress with the organization of a well-financed and staffed coalition of coal and utility companies. They are seeking amendments to the Staggers Act which more explicitly define the protections and procedures available to captive shippers in advancing complaints through the ICC. Industrial shippers have formed a coalition of their own for fair rail service practices. Finally, another group has emerged in recent months seeking a bolder strategy for rail rate relief. This group asserts that unfair rail practices violate the antitrust laws. At the same time, the railroads are building their defenses and developing alliances with interests in the shipping community that would resist a return to greater rail regulation. While the outcome of this controversy is uncertain, the issue of rail rate equity and reregulation promises to become one of the more active and hotly debated issues in the 99th Congress. However it comes out, the results will have a lasting impact on many western states, their present economy and future development.

• Research Organization: Western Governors' Association, Denver, CO (USA)
• DOE Contract Number: FG03-84SF12218
• OSTI ID: 5801471
• Report Number(s): DOE/SF/12218-T1; ON: DE85009864
• Country of Publication: United States
• Language: English

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