Service was challenging for rail shippers and railroads in 2014. There were several causes, including a severe winter, an increase in coal demand, an improved economy, an increase in shale oil and frac sand movements, a bumper crop of grain, and a failure of the railroads to adequately anticipate resource needs. Though the relative impact of any particular factor is open to debate, I think all would agree that the result was that rail service levels fell well below expectations.
At the Surface Transportation Board, we continue to actively monitor and address the service problems, making sure that the Class I railroads are doing everything they can to improve operations. On April 10, 2014, the board held a public hearing on this issue, Ex Parte 724, United States Rail Service Issues, and received input from a wide array of stakeholders. We subsequently issued two orders requiring two Class I railroads to focus their attention on moving fertilizer and grain products, as part of an overall effort to restore reliable service.
On Sept. 4, 2014, the STB held a public hearing in Fargo, North Dakota, and followed that with an order requiring all Class I railroads to publicly file weekly performance reports to promote industrywide transparency and improvements in rail service.
The STB continues to closely examine the service data and communicate regularly with railroads and shippers. I believe the STB’s attentive, transparent and flexible approach, along with our statutory authority, has promoted some improvement. But there is more work to be done to ensure that rail service improves across the entire network for all rail shippers.
Daniel R. Elliott III, Chairman, Surface Transportation Board