STB regulations that define the circumstances under which a shipper may petition for a mandatory interchange arrangement to gain access to a competing railroad. The rules set standards for when competitive access relief is warranted and what conditions apply. Competitive access rulemaking has been contentious, with railroads and shippers advocating opposing positions.
The independent U.S. federal agency responsible for the economic regulation of the nation's freight railroads, including jurisdiction over rates, mergers, acquisitions, line sales, and abandonments. The STB was created by the ICC Termination Act of 1995 as the successor to the Interstate Commerce Commission. It adjudicates shipper complaints about unreasonable rates and competitive access.
The ability of a shipper to use more than one railroad for a given movement, either through reciprocal switching, trackage rights, or geographic proximity to competing lines. Competitive access is a key factor in rate negotiations and is central to rail regulatory policy. Shippers with competitive access generally obtain lower rates than captive shippers.
An arrangement under which two or more competing railroads agree to switch each other's cars to and from industries served exclusively by the other, enabling shippers on one railroad to access the other's main line at a published switching charge. Reciprocal switching is a form of competitive access and is sometimes mandated by the STB. It is particularly important for shippers on short lines or in terminal areas.
A routing situation where a shipper must use a particular railroad for some portion of a movement because no competitive alternative exists for that segment, giving that railroad pricing leverage. The bottleneck carrier can set rates for the captive segment independently of competitive pressures. STB rules allow bottleneck shippers to challenge rates through rate cases.