AAR calls on Congress to continue safety programs, short line tax credit

The Association of American Railroads called on Congress to continue supporting grade crossing safety programs, tax credits that help short line railroads remain competitive and policies that encourage public-private partnerships for rail infrastructure as it considers reauthorization of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU). In testimony before the House Subcommittee on Railroads, Pipelines and Hazardous Materials, AAR President and CEO Edward R. Hamberger also urged the panel to reject policies that undermine railroads' ability to compete or invest in infrastructure, including allowing bigger trucks onto our nation's highways.

"America’s freight railroads operate on infrastructure that they own,
build, maintain and pay for almost entirely by themselves, unlike trucks
that operate on publicly financed highways," said Hamberger. "The taxes
trucks pay today do not come close to covering the costs associated
with their use of the infrastructure that the public provides. This puts
railroads at a competitive disadvantage that will only grow worse if
existing truck size and weight limits are increased."

Hamberger
pointed to several existing programs that should be continued under
SAFETEA-LU, including the Section 130 program that provides states with
funding for grade crossing safety improvements, the short line railroad
tax credit, the Congestion Mitigation and Air Quality Improvement (CMAQ)
program, public-private partnerships for rail infrastructure, and
programs that encourage regional planning organizations to consider
freight transportation needs, such as railroad projects and intermodal
projects.

"An efficient and safe transportation system is
essential to the growth and prosperity of our nation. Today’s system is
overburdened and freight railroads stand ready to work with all to be
part of the solution," said Hamberger.

Hamberger also pointed
out the need for regulatory certainty so that the freight rail industry
could continue investing in infrastructure, delivering for American
businesses, and creating jobs. In 2011, railroads plan to invest a
record $12 billion in infrastructure and equipment. This level of
investment is threatened by uncertainties created by issues such as the
overly broad positive train control mandate; increased potential
liabilities stemming from the continued obligation to carry extremely
hazardous materials; proposals to impose a safety fee on railroads not
charged to other industries; and proposals to create a freight fund to
be financed by a fee on freight shipments.

For Hamberger’s full testimony, click here.