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US railroads, shippers argue over regulatory proposals

  • : Biofuels, Chemicals, Coal, Coking coal, Crude oil, Fertilizers, Metals
  • 17/07/25

A meeting to collect public comments for the US Surface Transportation Board's regulatory reform task force today highlighted the vast divide between railroads and shippers on competition.

The so-called listening session today was geared toward board efforts to streamline its processes. Railroads said that changes made and proposed since the Staggers Rail Act of 1980 were essentially reregulation and would stifle economic growth. Shippers in turn argued that railroad consolidation had reduced competition and changes were necessary because so many companies were captive shippers.

The root cause of the 1970s' rail crisis which led to Staggers was "smothering regulation," Norfolk Southern vice president law John Scheib said. The board has been "backsliding" since then and needs to return to what Congress laid out nearly 40 years ago, he said.

Association of American Railroads (AAR) chief executive Ed Hamberger said that Congress had the opportunity to implement that and other changes when it passed the Surface Transportation Board Reauthorization Act of 2015 but "rejected calls for further regulation."

Shippers urged regulators to maintain federal protections.

"We urge the task force to reject any attempt by other stakeholders to rescind or weaken the few remaining statutory regulations afforded to rail users under the Staggers Rail Act and other federal statutes," National Grain and Feed Association general counsel Charlie Delacruz said.

Comments veered into a heavily debated issue — proposed new regulations to improve the availability of reciprocal switching.

"The board should move forward expeditiously to repeal and replace its outdated, burdensome and unworkable reciprocal switching rules," National Industrial Transportation League (NITL) executive director Jennifer Hedrick said.

The rules have never been successfully implemented, indicating they do not work, and shippers do not even bother to attempt to file cases, she said. It was a request from the group in 2011 that led to the board developing and proposing the reciprocal switching proposal it is now considering.

Implementing new rules would be a form of deregulation, Hedrick said, because it would eliminate board regulatory authority over a portion of a transportation move.

The switching rules in place are more of a bar to shippers and a change would remove barriers for shippers with no competitive options, American Chemistry Council senior director of regulatory and technical affairs Jeffrey Sloan said.

Railroads continue to fight the proposal.

"The forced switching proposal runs directly counter to what Congress' direction is to this agency," AAR's Hamberger said.

Hamberger also said the board should reject the proposal to remove the exemption of certain commodities from regulation, calling it "a solution in search of a problem."


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Malaysia’s January-July urea exports rise


24/09/19
24/09/19

Malaysia’s January-July urea exports rise

Singapore, 19 September (Argus) — Malaysia's urea exports during January-July increased by 4pc from a year earlier to 1.17mn t supported by firm deliveries to Australia, despite multiple turnarounds and production disruptions at state-owned producer Petronas' plants. Petronas took its 700,000 t/yr Bintulu urea plant off line on three separate occasions in February, early May and late June, with each turnaround spanning around two weeks or more. The most recent two-week turnaround at its Bintulu plant was completed in early July. Petronas also took its 693,000 t/yr Gurun plant off line in mid-May for around two weeks. But Petronas was still able to cater to its term commitments, with deliveries rising slightly compared with last year, especially to key markets like Australia. Deliveries to Australia rose by 7pc during January-July, largely because of a good monsoon season and heavy rainfall on Australia's west and east coasts that spurred domestic urea demand. This encouraged Australian importers to seek more cargoes during the peak application season from southeast Asia producers like Malaysia and the Middle East. Deliveries to Mexico also increased to 113,800t against 33,000t the previous year. Exports to New Zealand rose to 60,500t compared with 21,700t during January-July last year. Exports to Thailand fell by 30pc as Thai importers sought more Indonesian-origin cargoes this year, likely during occasions where there had been unexpected production disruptions at Petronas' urea units. Some Malaysian urea deliveries to southeast Asia were likely also replaced by increased Indonesian urea exports. Pupuk Indonesia had abundant urea inventories and export availability because of fewer turnarounds at its Kaltim urea plants. Exports to the Philippines fell by 44pc during January-July, largely because of reduced overall demand from Philippine importers citing high inventories. Bad weather and the absence of fertilizer subsidies also dampened overall urea demand. Exports to Myanmar (Burma) also slipped by 53pc as its importers sought cheaper urea from Oman as an alternative. Malaysia's urea exports in this year's fourth quarter are expected to increase. On top of term commitments, at least 40,000t of spot urea is to move to east coast India and some other cargoes and commitments are destined for regional markets and the west coast of Latin America. By Dinise Chng Malaysia urea exports (t) Thailand Australia Philippines Others Total Jan 41,247 32,000 40,045 139,005 252,297 Feb 15,321 400 6,604 91,083 113,408 Mar 27,629 33,001 21,421 50,338 132,389 Apr 33,511 33,057 5,685 42,332 114,585 May 30,368 30,001 2 133,992 194,363 Jun 30,183 32,615 3,490 32,027 98,315 Jul 46,354 96,442 23,880 101,586 268,262 Total 224,613 257,516 101,127 590,363 1,173,619 Source: GTT Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US Fed cuts rate by half point, signals more: Update


24/09/18
24/09/18

US Fed cuts rate by half point, signals more: Update

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Citgo auction result delayed amid last-minute motions


24/09/18
24/09/18

Citgo auction result delayed amid last-minute motions

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US seeks to purchase 6mn bl for SPR


24/09/18
24/09/18

US seeks to purchase 6mn bl for SPR

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