Rail Transportation A review of administrative, judicial and legislative developments affecting domestic and export coal traffic

During the past year, several important decisions by the Interstate Commerce Commission and the Federal courts have substantially expanded the extent of deregulation of the railroad industry. Without exception, these decisions have been adverse to the interests of shippers of coal by rail. Through the Railroad Revitalization and Regulatory Reform Act of 1976 (the ''4-R Act'') and the Staggers Rail Act of 1980 Congress clearly intended and directed a substantial relaxation of government regulation of the railroad industry. However, this deregulation was focused by Congress upon those transportation markets where the availability of other transportation options protected shippers from the exercise by the railroads of monopoly power in pricing and other activities. Where shippers are ''captive'' to the railroads, Congress recognized the need for continued regulation to protect shippers against the imposition of unreasonable rates. In a series of major decisions since enactment of the Staggers Act, the ICC has whittled away the protections which Congress provided in the law to such an extent that, for practical purposes, we are approaching full deregulation, at least in the area of rail rates. Of most importance to coal shipping interests are the Commission's recent decisions (a) proposing new guidelines for establishing maximummore » coal rate levels, and (b) exempting export coal traffic from all aspects of regulation under the Interstate Commerce Act.« less