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7/1/2008



Rail News: Rail Industry Trends

STB orders CSXT to provide DuPont rate relief; NMB installs Van de Water as chairman a second time


Yesterday, the Surface Transportation Board (STB) announced it reached unanimous decisions ordering rate relief for the E.I. du Pont de Nemours and Co. in the three rate complaint cases filed against CSX Transportation under the board's new small rate-dispute resolution process.

The STB determined CSXT was charging "unreasonably high" rates and ordered the Class I to reduce rates and pay reparations on six of seven chemical moves challenged by DuPont. The rate reductions range from about 5 percent to 40 percent of the challenged rates. The routes associated with the reductions and reparations are between Heyden, N.J., and Washington, W.Va.; Heyden and Duart, N.C.; Ampthill, Va., and Wyandotte, Mich.; Niagara Falls, N.Y., and New Johnsonville, Tenn.; Niagara Falls and Carney's Point, N.J.; and Pascagoula, Miss., and Neuse, N.C.

DuPont will obtain reparations and reduced rates totaling up to $3 million for the three cases over a five-year period, the STB said. The exact size of the award will depend on the actual number of shipments made by DuPont along the routes.

Meanwhile, another government board announced a former chairman is returning for a second term. The National Mediation Board (NMB) has appointed Read Van de Water to chair the three-member board.

A board member since 2003, Van de Water first served as NMB chairman from July 1, 2005, until June 30, 2006. The other NMB members are Elizabeth Dougherty and Harry Hoglander.

Prior to joining the NMB, Van de Water was assistant secretary for aviation and international affairs at the U.S. Department of Transportation. She previously founded Carson King Consulting, and served The Business Roundtable as legislative counsel, and Northwest Airlines as legislative counsel and director of government affairs.

An independent federal agency established by the Railway Labor Act, the NMB governs labor-management relations for about 500 railroads and 100 airlines.


Contact Progressive Railroading editorial staff.

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