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NGFA Reiterates Need for Streamlined Rate-challenge Procedure

STB proposal to improve and expedite its existing freight rail rate-review process

The National Grain and Feed Association (NGFA) this week submitted a statement to the Surface Transportation Board (STB) again calling on the agency to develop a new, streamlined and cost-effective method for grain and other agricultural shippers to challenge unreasonable rail rates.

The NGFA submitted the statement in response to an STB proposal to improve and expedite its existing freight rail rate-review process.

"The NGFA consistently has supported the STB's efforts to improve and streamline the procedures used to evaluate formal rail rate complaints," the statement said, referencing the NGFA's extensive 2014 proposal of a new, innovative, objective and inexpensive rate-challenge methodology. "The NGFA again urges the STB to redouble its efforts to develop and implement meaningful changes to its current rate-reasonableness standards and methodologies that have rendered futile the pursue of rate-reasonableness challenges by grain and other agricultural shippers."

No rate challenge has been filed by an agricultural shipper in nearly 40 years.

In its statement, the NGFA commended the STB for several of its proposed procedures designed to expedite rate cases, which the association said also could be applied to a new process for challenging unreasonable grain rail rates if the STB ultimately creates one. STB-proposed concepts supported by the NGFA would involve:

  • Limiting the length of final briefs in rate cases to no more than 30 pages. The NGFA did recommend that the STB evaluate the need for or length of closing briefs on a case-by-case basis to determine whether to dispense with the filing of final briefs or even shorter page limits depending upon the case and issues involved.
  • Appointing a STB staff liaison to be the point-of-contact to provide technical advice to the parties involved in a specific rate case in an effort to reduce the number of issues brought to the full agency for resolution.
  • Staggering the filing of public and highly confidential versions of filings three days apart, as well as adoption of standardized markings to designate confidential, highly confidential and sensitive security information.
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