[Congressional Record (Bound Edition), Volume 146 (2000), Part 15]
[Senate]
[Page 22571]
[From the U.S. Government Publishing Office, www.gpo.gov]



                      FREIGHT RAIL TRANSPORTATION

 Mr. CLELAND. Mr. President, today I am addressing the Senate 
to express my view on a vital part of our Nation's transportation 
infrastructure--the freight railroads.
  I am aware of concerns that have been raised by some companies that 
ship by rail about the service and rates available to them. Certainly, 
the ability to safely, economically and efficiently transport raw 
materials to plants and finished products to both domestic and 
international consumers is as critical as the actual production of 
these commodities and goods.
  Since 1827 with the founding of the Nation's first commercial 
railroad, the B&O, we have depended on the rails to perform this 
function. In its heyday, the iron horse dominated transportation of 
goods and passengers. Today, after surviving nearly total collapse in 
the 1970s, a streamlined, modernized rail industry continues to play a 
role, albeit a considerably downsized one, in the transportation 
marketplace. Our transportation infrastructure has evolved--now trucks 
on the interstate highways are by far the predominant mode of 
transportation, and inland barges carry coal and grain on our nation's 
waterways.
  As many of you know, I have always been interested in rail history. 
Indeed, Atlanta was originally known as Terminus because of the 
railroads which were sited there. What history has taught us is that 
the rails require a continuing, massive capital investment to operate 
safely. In the late 1970s, Congress faced the dilemma of a severely 
under-capitalized system with a dismal safety performance. The rails 
would have to be supported by massive federal subsidy or freed to 
compete in the marketplace in an effort to generate needed capital. 
Congress wisely chose the latter course, and the railroads have been 
able to generate the quarter trillion dollars needed since 1980 to 
support the infrastructure. In 1999 alone, the private investment was 
$16.2 billion, with $2.87 of assets needed for every dollar of revenue 
produced. The industry's vastly improved safety record in large part is 
a testament to the wisdom of that infrastructure investment. Let me add 
that although progress in this area has been significant, nevertheless 
this safety record can be further improved. It is my hope that 
management and labor will work together toward that end.
  The world is not perfect, of course, and in the intervening years 
issues have arisen which must be addressed--issues such as the need to 
honor the hard earned collective bargaining agreements of railroad 
workers. Many of these issues have been brought to the attention of 
Congress, the Interstate Commerce Commission and now its successor, the 
Surface Transportation Board, STB. Indeed, the Congress took a 
comprehensive look at rail regulation in 1995 when it created the STB. 
I know some companies believe their rail rates are excessive. While 
rates have declined more than 50 percent since 1981, some customers 
have benefitted more than others, reflecting the differential pricing 
put into place by the Staggers Rail Act of 1980. This has led in part 
to complaints being heard from segments of the shipping public. Many 
have suffered from service disruptions following recent mergers and 
consolidations. While I am very concerned about these situations, I 
believe the STB has worked within its mandate to address them.
  I have an open mind on whether these matters need to be examined 
further. If that is the case, I urge that we move carefully. We should 
not return to the very regulatory schemes that led to near disaster a 
generation ago. I would not favor policies that deprive the railroads 
of their ability to generate capital, resulting in the federal 
government--rather than the private sector--having to assume the costs 
of maintaining and operating the freight rail network.

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