The Surface Transportation Board (STB) implemented new rules for some of the largest railroads after customers said train backlogs have hampered their operations, the agency said. STB, which regulates freight railroad operations, says certain carriers will need to permit service-recovery plans and regular progress reports on rail service, operations and employment. The move follows complaints voiced at an STB hearing last month about rail-service congestion involving the major railways. Customers in the ag sector say delayed trains are impeding crop shipments, causing grain storage facilities to fill up, backing up fertilizer shipments and temporarily shutting down production at ethanol producing plants.
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The National Grain and Feed Association (NGFA) praised the STB action. “NGFA members continue to experience rail service issues in many areas of the country impacting feed availability for livestock, exports and processing facilities for food and fuel,” NGFA President and CEO Mike Seyfert said in response to STB’s announcement. “The additional transparency should help the board with its oversight and help shippers and receivers more efficiently plan operations and more accurately gauge when contingency plans are needed.”
