AAR (Association of American Railroads) President and CEO Ian Jefferies issued the following statement regarding the Surface Transportation Board’s (STB) proposed new rules regarding rate review procedures. The STB also announced a public hearing on December 12, 2019 regarding questions related to revenue adequacy.

“While we are still reviewing the proposed rules, AAR and its member will remain fully engaged with the Board and rail customers about how best to create more efficient processes. We continue to urge caution with respect to changes that violate the fundamental legal and economic principles that must bind the Board and warn against unintended consequences. The current regulatory balance has allowed railroads to invest in their networks in order to improve safety and meet the current and future needs of customers. During the December hearing, railroads will reiterate that revenue adequacy reflects the industry’s financial soundness and stability under the current regulatory scheme and must not be a trigger for new government intervention and rate regulation.”