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“The switching fee is incorporated in some manner into the competing carrier’s total rate to the shipper,” said the STB. And it observed that the competing carrier pays the incumbent carrier a switching fee for bringing or taking the cars from the shipper’s facility to the interchange point, or the opposite way. STB explained that under reciprocal switching, an incumbent carrier transports a shipper’s traffic to an interchange point, where it switches the rail cars over to the competing carrier. They added that the NPRM saw varied responses from industry stakeholders, noting that the STB has reviewed the existing record in this proceeding.
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1) et al (NPRM), which introduced new regulations under which it would exercise its statutory authority to require rail carriers to establish switching arrangements in certain circumstances.
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STB officials said that this hearing will focus on the proposed reciprocal switching regulations in Reciprocal Switching Docket No. And the second railroad compensates that railroad that has physical access in the form of a per car switching charge, with the shipper facility gaining access to an additional railroad. As defined by the STB, reciprocal switching is a situation in which a railroad that has physical access to a specific shipper facility switches rail traffic to the facility for another railroad that does not have physical access. Late last month, the Surface Transportation Board (STB), an independent adjudicatory and economic-regulatory agency charged by Congress with resolving railroad rate and service disputes and reviewing proposed railroad mergers, provided information regarding its public hearing on proposed reciprocal switching obligations, which is scheduled for March 15-16, and will be held at its Washington, D.C.-based office.Īs previously reported, the STB’s proposed reciprocal switching legislation offered up in 2016 would allow a rail shipper to gain access to another railroad if the shipper makes certain showings.