August 23, 2021
https://bit.ly/3moIeZd
Long before candidate Joe Biden stepped aboard the “No Malarkey” Express, he was known as “Amtrak Joe” for his avid use and vocal support of American rail. But now one wonders where that Joe Biden has disappeared to, in the wake of a recent head-scratching executive order that creates painful burdens and overwhelming disruption to the economic engine that is the nation’s crucial freight rail industry.
Freight rail is maintained by private operators that save taxpayers billions. But Biden’s order advises the Surface Transportation Board (STB) to mandate so-called competitive switching or reciprocal switching. Under the order, private rail operators are compelled by the government to open their tracks and facilities to competitors at rates set by government.
In short, competitors who have invested nothing into building or maintaining a rival’s rail infrastructure are given access and allowed to profit from it.
It’s akin to the government mandating that Holiday Inn can book rooms at the Ritz Carlton at a big discount. Not only is it patently unfair and anti-competitive, but it punishes the companies doing the bulwark of building and maintaining vital transportation infrastructure.
Read full article here.
