S. 2104: Reliable Rail Service Act of 2025

The Reliable Rail Service Act of 2025 aims to amend existing laws governing rail transportation services in the United States. The primary goal of the bill is to ensure that rail carriers provide transportation services that meet the reasonable requirements of shippers. Here are the key points of what the bill would do:

Amendment to Rail Service Requirements

The bill proposes to modify Section 11101 of Title 49, United States Code, which relates to the obligations of rail carriers as common carriers. The amendments include:

• Adding specific language that emphasizes the need for rail services to be timely, efficient, and reliable, fulfilling the reasonable requirements of shippers.
• Requiring the Board (likely referring to the Surface Transportation Board) to consider multiple factors when evaluating whether a rail carrier has failed to provide suitable transportation services. These factors include:
• Changes in service frequency and local service schedules.
• Reductions in employee numbers affecting service quality, including for clerical, customer service, maintenance, and train crew positions.
• Availability and maintenance of rail equipment and infrastructure.
• How well the service meets the operational needs of the requesting party.
• Prior service experience of the requester, including any limitations at their facilities.
• The commitment of the requester to provide equipment or resources necessary for the service.
• Whether conditions imposed by the carrier for service are reasonable.

Service Terms and Standards

The bill also aims to enhance the clarity and detail in service agreements between rail carriers and shippers. It mandates that service terms reflect:

• Reasonable transit times and other service standards that align with the needs of the shipper.

Expedited Proceedings

To address disputes regarding alleged violations of service requirements, the bill stipulates:

• Any proceedings initiated regarding a rail carrier's service violations must be expedited, with a completion deadline of 180 days.
• Requests for service terms must be resolved within 45 days after initiation.

Remedies for Violations

If it is determined that a rail carrier has violated the service agreements, the bill empowers the Board to:

• Prescribe reasonable service standards or transit times needed to fulfill the request of the shipper.

Overall Impact

The aim of the Reliable Rail Service Act of 2025 is to enhance the reliability and efficiency of rail service, ensuring that shippers can trust rail carriers to meet their transportation needs effectively and without unnecessary delays or complications.

Relevant Companies

• CSX: A major North American transportation supplier that might be impacted by stricter service requirements and expedited grievance processes.
• UNP: Union Pacific Corporation, which operates thousands of miles of rail in the western United States, could face operational changes to meet new service standards.
• KSU: Kansas City Southern, involved in rail operations across the southern U.S. and Mexico, may need to adjust to more stringent service expectations.