REMSA outlines advocacy priorities for 2017

Written by Kyra Senese, Managing Editor
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REMSA

The Railway Engineering-Maintenance Suppliers Association (REMSA) shared Jan. 24 its three advocacy priorities for 2017.  

 

REMSA plans to focus on working more directly with its membership, as well as with related railroad and rail supply associations, to carry out and strengthen a pro-rail agenda.

REMSA says its priorities emphasize preventing misguided regulations, advocating for pro-growth tax reform and ensuring President Donald Trump’s nominees to the Surface Transportation Board (STB) are swiftly confirmed, the association explained in a statement.

David Tennent, executive director for REMSA, says the association’s newly announced priorities make clear REMSA’s focus on representing its membership effectively in Washington, D.C.

 “Our members are ready to stand with our counterparts to ensure Congress and the Trump Administration are aware of our priorities and promote a pro-rail, pro-manufacturing agenda,” Tennent added.

“With President Trump and the 115th Congress now sworn in, our policy makers must be made aware of the devastating impact proposed STB regulations will have on railroad suppliers, but also of the opportunities to implement a pro-growth and pro-rail agenda,” says Bruce Wise, president of REMSA. “We look forward to working with our railroad and rail supply counterparts to promote sound policies.”

The association’s first goal, entitled “Preventing Regulations That Discourage Railroad Investments,” reacts to proposed STB regulations announced in summer 2016 which REMSA says risk disrupting steady investments in the U.S. rail network. 

“In 2015, railroads invested over $30 billion into the U.S. rail network. These investments promote an efficient, modern, and safe rail system, while supporting hard-working railway suppliers throughout the United States,” REMSA explains.

The association says it believes the STB’s efforts to re-regulate commodities and limit shipping rates are misguided, adding that REMSA is especially worried regarding the STB’s Notice of Proposed Rulemaking (NPRM) on forced access.

REMSA says the STB’s Competitive Access NPRM would mandate that railroads allow their competitors access to their rail lines, which the association says introduces a “radical approach” forcing railroads to surrender their privately owned property for the use of a competing railroad. This is also said to be concerning because competing railroads may operate at below-market rates and without proof that they are not being competitive. 

“Most alarmingly, this forced access proposal would disrupt network efficiencies, which would limit revenues and discourage sustained investments and maintenance of the rail system. These investments are critical to supporting high-wage rail and supplier manufacturing jobs throughout America’s heartland,” REMSA says.

REMSA’s second newly announced goal, “Pro-Growth Tax Reform,” addresses possibilities that the United States Congress and the Trump Administration may create a tax reform package in early 2017. 

“Reducing the corporate rate — the highest in the industrialized world — to a globally-competitive level will broaden the tax base, enhance U.S. economic development, promote growth and reduce debt,” the association explains. “Revamping our outdated tax code will allow large freight railroads to increase their reinvestments to upgrade and expand transportation infrastructure.”

Such changes are expected to benefit many American industries, REMSA says, including ports, mines, farms, food and energy producers—all of which are reliant on rail service.

The association also notes that shortline railroads are up against investment challenges. REMSA is urging that those involved in tax reform efforts consider the challenges faced by customers of all sizes in continuing to provide efficient, safe transportation.

“For the past 12 years Section 45G has proven that President Trump’s proposals to promote private infrastructure investment through the tax code can succeed while being both simple and fair,” the association added.

The association’s third priority, “Appointment and Confirmation of New Surface Transportation Board Nominees,” urges the Trump Administration to nominate fair-minded regulators to the STB following its 2015 reauthorization by Congress. 

REMSA says Congress enacted multiple changes to the STB, including deeming the board a stand-alone agency and expanding its membership from three members to five.

“Appointing fair-minded regulators to the STB will signify the Trump Administration’s seriousness on tackling our transportation and infrastructure challenges,” REMSA explained. “These individuals should understand the economic principles that shaped the 1980 Staggers Act and still help ensure railroads can earn necessary revenues today. A vibrant privately owned freight rail sector lessens financial burdens and deterioration of public infrastructure.”

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