Tuesday, July 25, 2017

The Regulation Train

Who regulates the regulators?
Today, US Railroads run a successful freight transportation system for shippers and consumers. Their networks exhibit fair prices, efficiency, strong competition against other surface transport modes, and an impressive safety record. Unlike some critical infrastructures, private railroads have an enviable record of investments and keeping maintenance current.

While for three decades since regulator reforms took place and the success story that followed for investors, shippers and consumers, STB has recently been reverting to ICC tendencies of unjustified regulations. There are no excess profits, no lSack of competition, no failing safety record, and no harm to consumers that justifies the STB’s current rush to socialize each railroad’s use of other railroads’ assets, without any guarantee of recovering the costs this “reciprocal switching regulation” imposes.
Only over-eager regulators could make the trains not run on time...

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