SOURCE: National Association of Chemical Distributors

National Association of Chemical Distributors

March 19, 2015 16:12 ET

NACD Welcomes Surface Transportation Board Reform Legislation

ARLINGTON, VA--(Marketwired - March 19, 2015) - Today, the National Association of Chemical Distributors (NACD) praised U.S. Sen. John Thune (R-SD), Chairman of the Senate Committee on Commerce, Science, and Transportation, and Ranking Member Bill Nelson (D-FL) for introducing the Surface Transportation Board Reauthorization Act of 2015 that would reform and reauthorize the Surface Transportation Board (STB). The STB largely oversees the regulatory compliance of the railroad industry and adjudicates disputes between shippers and rail companies.

This legislation will make long-overdue changes allowing the Board to more effectively promote access to competitive service and act as a more efficient venue to address rate and service issues between railroads and their customers. Specifically, the bill will expand the Board from three to five members, create new investigatory authority, provide rate review timelines, authorize a GAO study reviewing railroad rate bundling and contracting specifically for shippers, and develop a new arbitration process among other significant improvements.

NACD President Eric R. Byer stated, "Chairman Thune has worked hard over the years to ensure a level playing field for rail shippers, which includes 40 percent of all chemical distributors. NACD thanks him for being committed to holding the railroad industry accountable and we look forward to working with Chairman Thune and Ranking Member Nelson to make sure the concerns of shippers are met in a way that fosters greater competition and fair pricing in the freight rail industry."

NACD and its nearly 450 member companies are vital to the chemical supply chain providing products to over 750,000 end users. They make a delivery every six seconds while maintaining a safety record that is more than twice as good as all manufacturing combined. NACD members are leaders in health, safety, security, and environmental performance through implementation of Responsible Distribution. For additional information on our members, their safety record or NACD, visit NACD at www.nacd.com.

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