The Surface Transportation Board announced that it has adopted a final rule, by unanimous vote, to implement new regulations at 49 CFR part 1145 which sets forth a path for shippers and receivers to petition the Board for the prescription of a reciprocal switching agreement. The final rule is designed to promote adequate rail service.
Under the final rule, customers within a terminal area that have access to only one Class I rail carrier may petition the Board to order a reciprocal switching agreement when the customer’s rail service falls below specified levels. Board-prescribed reciprocal switching agreements will allow shippers or receivers to gain access to an additional line haul carrier, while still allowing the incumbent carrier to compete for the customer’s traffic. Reciprocal switching orders by the Board will be for a minimum of three years and a maximum of five years. The Board considers the new reciprocal switching rule to be a significant step in incentivizing Class I railroads to achieve and maintain higher service levels on an ongoing basis by permitting a competing line haul carrier to offer better service to win the customer’s business.
In a decision served on September 7, 2023, the Board issued a notice of proposed rulemaking (NPRM) that would provide for the prescription of reciprocal switching agreements with emphasis on rail service performance. The Board explained that, given the recurring service problems that plague the industry, it would focus reciprocal switching reform on service-related issues. The Board received many comments from interested parties.
-via Press Release
The post STB Adopts Final Rule For Reciprocal Switching appeared first on Railpace Newsmagazine.
