News & Reviews News Wire Shippers urge STB to require capacity improvements before Amtrak can launch Gulf Coast service

Shippers urge STB to require capacity improvements before Amtrak can launch Gulf Coast service

By Bill Stephens | February 7, 2022

| Last updated on March 30, 2024

Letters follow request for support from CSX CEO

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Freight train with blue and yellow engine leaving main line
A westbound CSX merchandise train enters a 6,300-foot passing track at Harbin, Miss., for a meet with an eastbound freight on June 6, 2021. Letters from shippers and trade groups are asking the Surface Transportation Board to require Amtrak to fund infrastructure improvements before starting Gulf Coast passenger service. Bob Johnston

WASHINGTON— More than a dozen rail shippers and trade associations from across North America have written to federal regulators to express concern about how proposed Amtrak service on the Gulf Coast could harm freight service between Mobile, Ala., and New Orleans.

Most of the submissions are form letters that urge the Surface Transportation Board to require Amtrak to fund capacity projects so that passenger service does not affect freight operations on the corridor.

The letters come from shippers and trade associations in the Southeast as well as from shippers as far away as eastern Canada and Oregon. The rail customers ship a range of products, including coal, chemicals, resins, recycled glass, forest products, and steel.

The letter-writing campaign comes after CSX CEO Jim Foote asked shippers to sign a petition or to write to the STB directly regarding the potential negative impact Amtrak service would have in the absence of capacity improvements on the single-track Mobile-New Orleans route [see “CSX seeks shipper support …,” Trains News Wire, Feb. 4, 2022].

Amtrak has hauled CSX and Norfolk Southern before the STB, arguing that host railroads must accommodate two daily round trips between Mobile and New Orleans [see “Amtrak asks STB …,” News Wire, March 16, 2021]. Amtrak has accused the freight railroads of dragging their feet on the proposed service and wanted to begin service last month, even before capacity improvements were made to CSX and NS trackage. The board has scheduled a Feb. 15 hearing on the dispute.

“CSXT and Norfolk Southern Railway Company have submitted evidence, including a Rail Traffic Controller study, that shows the introduction of Gulf Coast passenger service between New Orleans and Mobile will cause significant harm to freight service,” the shipper letters note. A representative letter is available here.

Shippers warned the board that local service would be hit the hardest. If rail service falters, some of the shippers questioned whether they would be able to meet customer demand and remain profitable.

“The Board has an obligation to protect the interests of all parties that rely on the national rail network, not just those of passenger rail,” the letters say. “Amtrak’s desire for access to the Gulf Coast Corridor with no strings attached is not only harmful to freight rail service, but untenable given the substantial funding it received from Congress last year.”

The shippers and trade associations said they did not oppose Gulf Coast passenger service, but emphasized it should not decrease the quality of freight service.

The Alabama Railway Association, which represents Class I railroads and short lines operating in the state, also asked the board in its letter to deny Amtrak’s request to begin service to Mobile unless accompanied by capacity improvements. The group raised concerns about how passenger service would cause congestion that would affect the Port of Mobile and ripple throughout the state.

Amtrak declined to comment.

11 thoughts on “Shippers urge STB to require capacity improvements before Amtrak can launch Gulf Coast service

  1. HOGWASH! If they can’t or won’t accept two trains on their systems they shouldn’t be running trains. Seems like they want to stick it to passenger service. That railroad should not accept any more customers on the line if they can’t run two passenger trains over it. Stop running two mile long trains and you might get somewhere. Everything isn’t for the all mighty dollar or is it?

  2. I read where CSX runs 4 freights a day on this track. That leaves a hell of a lot of open track for 2 passenger trains to run. CSX is using the old formula railroads have used since the beginning of Amtrak. It was BS then and is BS now.
    I am not a Amtrak pusher, in fact I don’t care if it creases to be. But the crap the railroads use in fighting them stinks.

  3. A maxim in business: If you want something, you have to ask for it. Otherwise, one entity will run right over you. Both parties have to win in some fashion.

  4. I don’t feel that it is unreasonable for CSX to ask for some capacity improvements. On the other hand the idea that four daily passengers trains will cause a complete meltdown is bollocks. The question is what level of increased capacity is appropriate. I wonder if it would possible for the two sides to agree to some sort of binding arbitration?

  5. In my mind, CSX and NS run long, long PSR trains the sidings are too short to handle most of them, Amtrak comes along and wants to run 2 round trips and day……CSX and NS see an opportunity to stick Amtrak and the states with the bill for longer sidings and double track that they don’t want to spend the money on.

    1. I think you have hit the nail on the head. This is all about freight railroads getting financial assistance without it looking like a handout. Making it look like they stuck it to QAmtrak is just icing on the cake.

  6. This is a test for the STB and the criticism of PSR. Here’s my take, if PSR is a good as the railroads say it is, then adding 2(I repeat 2) passenger trains a day should not affect freight service one iota.

    1. Mike, these could be large shippers that have interchange traffic going to CSX and at that point of interchange their freight gets bogged down.

  7. What a crock! CSX and NS insult our intelligence. Honesty is absent from their CEO. Form letters…throw them away!

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