commitment to meet the shipper’s needs, safely and without degrading service

to other customers or interfering with the incumbent’s ability to provide

service. We note that, in our October 23, 1997, remarks before the Board in Ex

Parte 573, we stated that the Board
should consider using its emergency powers under 49 U.S.C. 11123 to direct the
handling, routing or movement of traffic so as [to] improve the level of service being
provided to specific agricultural shippers. Aithough the USDA would caveat that such
emergency powers only be exercised ... in specific situations in which (1) agricultural
shippers currently being served by the [Union Pacific Railroad (UPSP)] have identified
alternative rail service providers whe are willing to serve them, and (2) such alternative

service would not cempromise recovery of the UPSP under its recovery plan. (Emphasis
added).

USDA’s suggestion thus matched the second of the two tests the Board has
proposed.

Our view is that there are win-win opportunities available to railroads
and shippers. Should congestion create power or crew shortages in one part of
a carrier’s system, shippers in areas removed from the source of the congestion
would benefit from additional access. Access in this case might benefit the
congested carrier, too, as that carrier could devote its limited resources to
fixing its immediate problems undistracted by shippers in other parts of its

system.

CONCLUSION
USDA supports the proposed changes to Title 49, Chapter X, Part 1146

of the Code of Federal Regulations. Because of the high levels of traffic

4


49 U.S.C. 10705 or 11102, will allow shippers to obtain relief from service
failures that do not rise to “an emergency of such magnitude as to have
substantial adverse effects on shippers and on rail service” in a region of the
Unitec States. Currently, rail access challenges using sections 10705 and
11102 must prove that the railroad is acting in an “anticompetitive” manner
contrary to the competition policies outlined in 49 U.S.C. 10101. USDA agrees
with shippers that this standard is too restrictive and precludes alternative
service in those situations where it is most urgently needed — when a railroad
finds itself unable to provide the level of service its shippers need and are

accustomed to receiving.

STRIKING THE RIGHT BALANCE

USDA is aware that implementing this proposed rule will be difficult; the
Board must strike the right “balance” between the competing claims of the
owner (the railroad whose performance has deteriorated) and the general public
{shippers and competing carriers}. We agree with the Board that access to
another railroad when service is plainly inadequate for a shipper is a serious
remedy and that shippers should first meet the two-part test the board is
proposing. Shippers should {1} consult with the incumbent carriers to see
when adequate service will be restored, and if service cannot be restored in a

reasonable period of time, (2) obtain from another railroad the necessary

Ww


railroads are now able to attract, and the resulting lack of available capacity,
railroads seem unable to respond to shecks with the same degree cf flexibility
they once exhibited. As a result, rail service can be disrupted in regions far
removed from the site of an initial disturbance. These disruptions can easily
affect interstate commerce and USDA believes that the rules proposed by the

Board may help diminish the severity of rail disruptions when they do occur.

Respectfully submitted,

WV cobrak V, 0) POLO ae

Michael V. Dunn
Assistant Secretary

Marketing and Regulatory Programs

U.S. Department of Agriculture
Washington, D.C. 20250


BEFORE THE

SURFACE TRANSPORTATION BOARD

STB EX PARTE NO. 628

EXPEDITED RELIEF FOR SERVICE INADEQUACIES

COMMENTS OF THE

DEPARTMENT OF AGRICULTURE

Michael V. Dunn

Assistant Secretary

Marketing and Regulatorv Programs
U.S. Department. of Agriculture
Washington, D.C. 20250

Date: June 15, 1998


CERTIFICATE OF SERVICE

The undersigned hereby certifies that on June 15, 1998, he caused a copy of the
Department of Agriculture’s comments to be served by first-class mail, postage prepaid, on all

parties of record in STB Ex Parte No. 628, Expedited Relief For Service Inadequacies.

Program ‘Manager
Marketing and Transportation Analysis
Agricultural Marketing Service


BEFORE THE

SURFACE TRANSPORTATION BOARD

STB EX PARTE NO. 628

EXPEDITED RELIEF FOR SERVICE INADEQUACIES

COMMENTS OF THE

DEPARTMENT OF AGRICULTURE

AUTHORITY AND INTEREST

Pursuant to its decision in Review of Rail Access and Competition Issues,
STB Ex Parte 575, served April 17, 1998, the Surface Transportation Board
(Board) has instituted this proceeding to solicit comments on proposed rules
that would establish expedited procedures for shippers to obtain alternative

service from another rail carrier when the incumbent carrier cannot properly

serve shippers.
These comments are filed on behalf of the Secretary of Agriculture.

Under the Agricultural Adjustment Act of 1938 and the Agricultural Marketing

Act of 1946, the Secretary is charged with the responsibility to represent the

—


interests of agricultural shippers and producers in improving transportation
services and facilities by, among other things, initiating and participating in

Board proceedings involving rates, charges, tariffs, practices, and services.

PREFATORY REMARKS

The service problems of the past year have shown that rail service
disruptions can quickly muitiply throughout the entire rail network. The
Department of Agriculture (USDA) believes that the Nation’s rail network is
much more intensively empioyed today than it was ten years ago. Because of
the high rates of rail capacity utilizaticn, shocks that, in the past, could be
easily handled locally, now can disrupt rail service in regions far removed from
the site of the original disturbance. Given the increased probability that such
service disruptions car. have impacts on interstate and international
commerce, USDA supports the Board in initiating this proceeding and
welcomes the opportunity to present its comments. We believe that rules
providing shippers expedited relief for service inadequacies will not only
prevent service discrimination but may also help diminish the severity of rail
cisruptions when they do occur.

USDA agrees with both shippers and railroads that the Board should be
able to remedy service failures more quickly and effectively. We also believe

that the proposed rule, which would allow shippers to seek relief either under