“U.S. rail industry consolidation has led to poorer, not improved, service for agricultural
shippers,” said USW President Vince Peterson. “In addition, we see extreme disparity in rates
for wheat shippers. Rail rates over the last decade have increased exponentially and rates for
wheat are higher than rates for other commodities even with similar handling characteristics.
Those higher rates make U.S. wheat less competitive in the global market at a time when higher
prices already hurt our competitiveness.”
“NAWG is disappointed by today’s STB announcement and maintains our concerns that the
merger of CP and KCS will impede competition in the rail market and increase rail rates,” said NAWG CEO, Chandler Goule. “With 50 percent of wheat being exported, wheat is heavily
reliant on rail transportation to move across the United States. Since the merger was
announced in 2021, NAWG has filed four public comments with the STB opposing the merger,
citing a myriad of concerns on the impact to competition, unfair access to competing wheat
producing countries, and changes to tariff provisions that could impact wheat farmers.”
USW and NAWG believe the STB must conduct more rigorous oversight of rail rates and
service issues going forward. The STB should also aggressively pursue policies designed to
inject competition such as reciprocal switching – a proposal that the STB ironically shelved last
year because Class 1 rail service was severely challenged for agricultural shippers.
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