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California State Rail Plan 2005-06 to 2015-16

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<strong>2005</strong>-<strong>06</strong> – <strong>2015</strong>-<strong>16</strong> <strong>California</strong> <strong>State</strong> <strong>Rail</strong> <strong>Plan</strong><br />

railroads. This shift from short line rail <strong>to</strong> trucks will further congest the <strong>State</strong>’s<br />

highway system, create more traffic delays, and increase air pollution and highway<br />

maintenance costs. The loss of revenue <strong>to</strong> short line railroads could force some <strong>to</strong><br />

go out of business leaving some <strong>California</strong> rail shippers without rail services.<br />

The additional truck transportation costs will have <strong>to</strong> be passed on <strong>to</strong> consumers,<br />

making goods more costly <strong>to</strong> purchase.<br />

SHORT LINE BILL OF RIGHTS<br />

The continuing consolidation of Class I railroads is a concern for short line<br />

railroad opera<strong>to</strong>rs. In 1975, there were 22 Class I railroads operating in the U.S.<br />

Presently, there are eight. Since 1995, the number of Class Is operating in<br />

<strong>California</strong> has decreased by half, from four <strong>to</strong> two.<br />

The American Short Line and Regional <strong>Rail</strong>road Association (ASLRRA) is a<br />

national non-profit trade association representing the interests of over 400 member<br />

short lines and regional railroads. In order <strong>to</strong> protect the viability of short lines,<br />

ASLRRA expressed <strong>to</strong> the Surface Transportation Board (STB) its opinion that a<br />

“Short Line Bill of Rights” should be made a condition for the approval of all<br />

future Class I railroad mergers 14 and consolidation transactions. The ASLRRA,<br />

has proposed four rights as follows:<br />

1. Small railroads have the right <strong>to</strong> compensation for Class I service failures.<br />

2. Short line and regional railroads have a right <strong>to</strong> interchange and routing<br />

freedom.<br />

3. Short line and regional railroads have the right <strong>to</strong> competitive and<br />

nondiscrimina<strong>to</strong>ry pricing.<br />

4. Short line and regional railroads have a right <strong>to</strong> fair and nondiscrimina<strong>to</strong>ry<br />

car supply.<br />

14 STB ExParte No. 582, Public Views on Major <strong>Rail</strong> Consolidations, <strong>State</strong>ment of Frank K. Turner, President,<br />

ASLRRA.<br />

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