STB Publishes Reciprocal Switching NPRM
Yesterday, the Surface Transportation Board, responding in part to a 2011 petition by the National Industrial Transportation League (NITL), announced a notice of proposed rulemaking (NPRM) for “Reciprocal Switching For Inadequate Service”. The newly proposed regulations would provide a streamlined path for the prescription of a reciprocal switching agreement when service to a terminal-area shipper fails to meet any of three performance standards.
Background
The STB postponed action on the NITL petition while it dealt with similar issues under EP 705. A year later the Board resumed actions under EP 711 which led to a proposed rulemaking in 2016 under EP 711_01. See page 3 of the current decision for a discussion of the provisions of NPRM.
Continued back and forth discussions between the Board and the Class I railroads delayed actions on that proposed rule, until this week that Board terminated actions under EP 711_01 and published a new NPRM.
Given the major service problems subsequent to the 2016 NPRM and the history of recurring service problems that continue to plague the industry, the Board has concluded that it is appropriate, at this time, to focus reciprocal switching reform on addressing inadequate service.
New Performance Standards
The new NPRM would provide a new 49 CFR Part 1145 which would establish three new performance measures that would be used by customers, railroads and the STB in determining if the STB should provide reciprocal switching orders that provide for non-tenant railroads to pick-up or deliver contract loads for a given facility. The new standards are intended to address:
A rail carrier’s failure to meet its original estimated time of arrival (OETA), i.e., to have adequate on-time performance,
A deterioration in the time it takes a rail carrier to deliver a shipment (transit time), and
A rail carrier’s failure to provide adequate local (or FMLM) service, as measured by the carrier’s success in meeting an “industry spot and pull” (ISP) standard.
The NPRM discusses the various measures that could be used by the STB to evaluate the above standards.
Public Comments
The STB is soliciting public comments on the NPRM. Comments may be filed via the STB’s website {https://www.stb.gov/proceedings-actions/e-filing/other-filings/; Docket No. EP 711 (Sub-No. 2)}. Comments should be filed by October 23rd, 2023.