New federal rule may help boost competition for railroad shipments at companies with few options

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Railroad shippers with plants that are only served by one railroad may soon be able to get a bid from another railroad if their current service is bad enough under a new rule that was proposed Thursday to help boost competition.

STB Chairman Martin Oberman said it’s clear to him that increasing competition in this monolithic industry could do wonders for the countless companies thatto deliver raw materials and finished products by giving railroads another incentive to improve service.

Shippers would also be able to seek relieve if the amount of time it takes the railroad to deliver a product significantly worsens or if the railroad fails to handle local deliveries on time on average.

 

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