Senators Chide STB on Rail Fuel Surcharges
enators blasted the chairman of the Surface Transportation Board Wednesday, saying more needs to be done to strengthen railroad competition and lower rail fuel surcharges, the Associated Press reported.
STB Chairman W. Douglas Buttrey said at a subcommittee hearing that the board is attempting to improve its oversight of commercial activities on railroads, AP reported.
But Sens. Byron Dorgan (D-N.D.) and Conrad Burns ( R-Mont.) said regulators have been inactive for too long.
While the regulators have listened to and reviewed shipper complaints, they have done little to give them relief, the senators said.
At issue is the lack of railroad competition in some states. Shippers trying to send coal and other products have complained they are held captive to higher prices and equipment shortages, and argue that they are forced to pay inflated fuel surcharges.
A preliminary report issued by the Government Accountability Office Wednesday came to a similar conclusion, saying some shippers are “paying significantly higher rates than others,” AP reported.
The GAO, which is expected to issue a final report on the issue later this year, said there is little data showing the state of railroad competition around the country.
The Wall Street Journal reported in April that rail lines and their customers were at odds over fuel surcharges, which customers said were running too high. (Click here for previous coverage.)
