This week Senators Tammy Baldwin, D- Wisc., and Roger Marshall, R- Kan., introduced legislation they say will address poor rail service and rising costs. The Reliable Rail Service Act would clarify railroad carriers’ common obligations. It would also establish specific criteria for the Surface Transportation Board to consider when deciding if a carrier has violated their obligations.

Under the proposed legislation, the STB would be mandated to consider the impact of changes in frequency of service. It would also be required to evaluate the impact of employment levels and equipment reductions as well as whether service reasonably meets local requirements.

Since the Staggers Rail Act of 1980 deregulated the rail industry, carriers have been required to serve shippers “on reasonable request.” Critics say the rule’s ambiguity has led to insufficient rail service and higher shipping costs. They contend defining carrier obligations are now more important than ever due to industry consolidation and reduced rail network capacity.

“I frequently hear from Kansans that the service of Class 1 railroads is not living up to the expectations,” Sen. Marshall says. “These service failures hurt our shippers who use the rail to deliver their products to key export facilities. That’s why the Staggers Act of 1980 must be modernized to clearly define railroad’s common carrier obligations. The multitude of organizations supporting this bill is a testament to how dire this situation truly is.”

More than 50 agriculture, labor, manufacturing and trade organizations have endorsed the bill, including the American Farm Bureau Federation, the American Soybean Association, the International Dairy Foods Association, the National Association of Wheat Growers, the National Corn Growers Association, the National Farmers Union, the National Mild Producers Federation, the National Rural Electric Cooperative and USA Rice.

National Grains and Feed Association CEO Mike Seyfert says clarification of the common carrier obligation has been needed for decades. He believes this bill provides STB with clear oversight rules to help address the nation’s freight railroad supply chain challenges and improve rail service for agricultural shippers.

“NGFA members appreciate Senator Baldwin and Senator Marshall’s leadership in responding to rail service issues and for cosponsoring this legislation, which will help regulators respond to service disruptions that cause hardship for livestock producers, grain exporters, and grain processing facilities,” Seyfert says.

This is the second time Sen. Baldwin has introduced legislation to address rail industry issues. A similar bill introduced in September 2022 died in the Senate Committee on Commerce, Science and Transportation.