BISMARCK, N.D. - Agriculture Commissioner Roger Johnson told state legislators Friday, that increased federal oversight of rates and services is urgently needed to stop unfettered monopolistic practices by railroad carriers.
Johnson testified Friday before the House Transportation Committee in support of House Concurrent Resolution 3034 which urges passage of federal legislation to protect railroad shippers, particularly those in areas without effective rail competition.
"The resolution points out the fact that consolidation in the rail industry has led to unreasonable and unrestrained market power over "captive rail shippers," Johnson said. "Despite recent efforts of Congress and repeated pleas to the Surface Transportation Board to take corrective actions, it appears that the rail industry continues to operate in a manner that begs for additional federal legislative intervention."
Last year, as president of the National Association of State Departments of Agriculture, Johnson testified before the U.S. Surface Transportation Board. He told the federal agency that agricultural producers in North Dakota and other Midwestern states bear the brunt of monopolistic rail practices, such as captive rates and fuel surcharges, as well as rail line abandonment. Johnson also testified in 2006 before the U.S. Senate Committee on Commerce, Science & Transportation on rail car shortages and unreasonable fuel surcharges.
