<B>AFPA Calls for Increased Rail Competition</B>

The American Forest and Paper Association is among a number of rail shippers urging the Senate Commerce Committee to put increased rail competition on Congress' agenda next year.

In a letter sent by the AFPA, the American Chemistry Council, Edison Electric Institute, the National Rural Electric Cooperative Association, and the American Public Power Association, the group noted tha the Staggers Act had the goal of replacing government regulation of railroads with market competition. But since that time, "the structure of the nation's rail industry has changed dramatically."

The letter also was signed by close to 300 business and industry leaders.

The letter continued, noting that while major railroads in North America are poised for more consolidation, the Surface Transportation Board "continues to adhere to policies that hamper rail competition. Structural changes in the rail industry combined with STB policies have stopped the goal of the Staggers Act dead in its tracks."

The groups cited that due to lack of competition, rail transit time for one AFPA member jumped to 45 days from 14 days for shipments from east Texas to southern California.