Posts Tagged ‘Peter DeFazio’

T&I Chair DeFazio challenges proposed CN and KCS merger trust

Rep. DeFazio

WASHINGTON – Chair of the House Committee on Transportation and Infrastructure Peter DeFazio (D-Ore.) sent a letter to the Surface Transportation Board (STB) opposing the approval of a trust for the proposed merger of the Canadian National (CN) and Kansas City Southern (KCS) railroads. In his letter, DeFazio stated that approving the trust is not in the public interest and would reduce competition.

“A single holding company responsible for this traffic would likely change rail traffic patterns in the significant areas of parallel service overlap and that would reduce the rail service options these 300 customers currently enjoy,” Chair DeFazio wrote in his letter. “I am also troubled that this combination of Class I railroads serving all three nations in North America will exacerbate U.S. job losses from cross-border trade agreements that prioritize profits over people and inflict harm on worker’s rights, consumer safety, and the environment.”

In April 2021, Chair DeFazio issued a statement after Canadian Pacific (CP) and CN each made separate multi-billion dollar offers to buy KCS, warning that the bidding war that ensued for the railroad threatened to usher in a new round of consolidations in the rail sector, ultimately threatening jobs and affecting shipping in the U.S.

DeFazio’s full letter to STB can be found below and here.

 


 

July 26, 2021

Ms. Cynthia Brown
Chief, Section of Administration
Office of Proceedings
Surface Transportation Board
395 E Street, S.W.
Washington, DC 20423

Re: Finance Docket No. 36514, Canadian National Railway Company, et al. – Control – Kansas City  Southern Railway Company, et al.

Dear Ms. Brown:

I am writing to express opposition to the voting trust proposed by Canadian National Railway Company (CN) in its proposed merger with Kansas City Southern Railway Company (KCS). I am concerned that this proposed trust is not in the public interest. The trust would reduce competition and prejudice the outcome of the Surface Transportation Board’s merger proceeding.

In its May 14, 2021, submission to this docket, the Antitrust Division of the U.S. Department of Justice explained how voting trusts reduce competition both in general for railroad mergers and in particular to the consideration of a voting trust for CN and KCS. In general, putting two formerly competitive businesses under a single holding company immediately reduces the parties’ incentives to engage in competition. While the Surface Transportation Board regularly allowed railroad trusts throughout the many railroad consolidations of the 1980s and 1990s, the board has made the requirements to approve a voting trust more stringent since 2001 as part of an overall reform of merger rules. Now, according to 49 CFR 1180.4(b)(4)(iv), applicants must demonstrate that trusts would be in the public interest. Approving a CN-KCS trust would signal to the rest of the rail industry that the STB is engaging in business as usual, despite the requirement to consider the public interest, and could launch a new round of mergers.

Specifically with regard to the potential for a CN-KCS trust, I am concerned that approximately 300 current customers overlap on the CN and KCS networks. A single holding company responsible for this traffic would likely change rail traffic patterns in the significant areas of parallel service overlap and that would reduce the rail service options these 300 customers currently enjoy. I am also troubled that this combination of Class I railroads serving all three nations in North America will exacerbate U.S. job losses from cross-border trade agreements that prioritize profits over people and inflict harm on worker’s rights, consumer safety, and the environment.

I trust that the Surface Transportation Board will look at the specific facts of this action and conclude that approving a trust is too much, too soon. Too much authority in one company to somehow keep two companies competing against each other that have significant service overlap and too soon because allowing the trust creates a new floor purchase price for any other potential competitive bidders for KCS railroad. 

Sincerely,
Peter A. DeFazio

TD leaders praise House passage of INVEST Act

CLEVELAND, Ohio (July 1, 2021) — SMART Transportation Division leaders expressed their appreciation as the Investing in a New Vision for the Environment and Surface Transportation (INVEST) in America Act (H.R. 3684) successfully passed out of the U.S. House of Representatives, 221-201, on July 1 with two-person crew and other transportation safety provisions important to TD members remaining intact.

“This bill is a great step ahead for the country as it works to repair years of inattention given to the country’s infrastructure,” SMART Transportation Division President Jeremy R. Ferguson said. “The INVEST Act also pays heed to many safety concerns expressed by labor — the essential workers who helped move our nation through the COVID pandemic — bus operators, freight rail workers and transit workers. We thank Peter DeFazio, Donald Payne and all those in the House Transportation and Infrastructure Committee who spurred H.R. 3684 to passage in the full House, and we now look ahead to consideration in the Senate and beyond.”

The INVEST Act is a surface transportation reauthorization bill that encompasses substantial investment in the nation’s infrastructure as well as in the safety of the people who keep the country moving. H.R. 3684’s components look to protect bus and transit workers from assault, improve school bus safety and maintain safe freight rail operations. It contains increased funding for Amtrak passenger rail service and protects the environment, the public and rail workers alike by putting into law the Rule of 2 — that, like a pilot and co-pilot in the air — a certified engineer and a certified conductor remain present in the cab of freight trains when operated through the nation’s communities.

“We’re very pleased that the House has wisely moved ahead today on the legislative path to ensuring that rail safety’s Rule of 2 is maintained with the INVEST in America Act, and that the bus safety provisions, Amtrak funding and other rail safety components stay in the bill,” SMART-TD National Legislative Director Greg Hynes said. “Now, similar to last year, the time has come to make it crystal clear to senators who might be on the fence that the safety aspects within this bill are not up for negotiation.”

“We truly thank and appreciate those legislators who supported the INVEST Act in its journey through the House and who listened to what we had to say,” Ferguson said. “There is more work to be done and a path to be cleared for this legislation in the Senate, and the members and officers of our union are ready to put in the time.”

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The SMART Transportation Division is comprised of approximately 125,000 active and retired members of the former United Transportation Union, who work in a variety of different crafts, including as bus and commuter rail operators, in the transportation industry.

House transportation leaders request GAO study on PSR

DeFazio

WASHINGTON — The chair of the House Committee on Transportation and Infrastructure Peter DeFazio (D-OR) and the chair of the Subcommittee on Railroads, Pipelines, and Hazardous Materials Donald M. Payne Jr. (D-NJ) are requesting the U.S. Government Accountability Office (GAO) examine the impacts that the implementation of precision scheduled railroading (PSR) by Class I railroads are having on workers, safety, freight shippers, passenger railroads and long-term management of the nation’s railroads.

“PSR in practice means the bottom line drives the decisions,” said Chair DeFazio. “Longer trains, unhappy shippers and a workforce pushed to do more with less is not a model to chase after – unless you’re on Wall Street. But we can’t let hedge fund managers write the rules of railroading. Last Congress, my Committee heard from various stakeholders concerned for the immediate and long-term impacts of PSR. This study, passed by the House last year in my surface transportation reauthorization bill, the INVEST in America Act, will help us find ways to address the impacts this railroad management strategy has on workers, freight shippers, passenger railroads and rail safety.”

Payne

“Precision scheduled railroading is being used more and more throughout the rail industry,” said Rep. Donald M. Payne Jr. “But I am concerned that this strategy could come at the expense of worker safety and smart, long-term railroad management. We need more information about this practice to determine whether it is beneficial or harmful to our nation’s railroad system.”

Read their letter making the request to the GAO. (PDF)

Amtrak furloughs could be avoided with proper action in Congress

Amtrak, despite having been given $1 billion in funding under the CARES Act to prevent furloughs as a result of COVID-19, has announced that more than 500 – 509 to be exact – SMART members are targeted to be furloughed, effective Oct. 1.

Carrier leadership announced Sept. 1 that approximately 1,950 unionized jobs are being targeted by Amtrak’s latest cost-cutting measures, which come on the heels of voluntary buyouts from earlier this year and a reduction in service on a number of long-distance routes.

Undoubtedly, the pandemic has rocked the global economy. However, some countries have it under control and can focus on virus containment and economic recovery while others, such as the United States, are seeing cases continue to rise (more than 6 million nationwide) along with deaths attributed to the virus (approaching 200,000).

“It is our hope to recall furloughed employees as soon as business conditions or funding permits,” Amtrak wrote in its notification of the furloughs.

But will additional funding for Amtrak materialize? There’s a transportation bill – The Moving Forward Act (or HR 2, which contains the INVEST Act) — sitting before the Senate that provides funding for Amtrak that could have averted these furloughs. However, Republican leaders and White House staff declared the bill dead on arrival after it was passed by the House.

“This week, another 2,000 workers learned that they will be losing their jobs due to the effects of the coronavirus pandemic. This time it is largely Amtrak employees who operate trains, provide onboard services, and support passengers who will bear the brunt of this administration’s failure to lead the country during this pandemic. The jobs at the center of today’s announcement are good paying, union jobs that sustain middle class families and will be difficult to replace, especially in a time of sky-high unemployment,” said U.S. Rep. Peter DeFazio, chairman of the House Committee on Transportation and Infrastructure. “In July, I led the House in passing the Moving Forward Act, which tripled funding for Amtrak to nearly $29 billion. Later that month, the House also approved transportation appropriations legislation that provided $10 billion for Amtrak, including emergency appropriations that contained protections to prevent the furloughing of workers. In fact, our Committee will soon be hearing from workers who are impacted by these furloughs. It’s time for Republicans in the Senate to stop sitting on these important bills and do their job to protect Amtrak employees and so many others currently in need.”
Next week, the House Transportation and Infrastructure Subcommittee on Railroads, Pipelines, and Hazardous Materials will be holding a hearing on Amtrak’s response to the COIVD-19 pandemic. On the docket to be discussed are these furloughs and the carrier’s reduction in service, among others.

Our union is working hand-in-hand with the subcommittee and with receptive members in Congress to see that these cuts are reversed.

“We are doing everything in our power to make sure that this nation’s decision makers are fully aware of the ongoing events at Amtrak and the devastating effects they’re poised to have on our membership,” SMART Transportation Division President Jeremy R. Ferguson said. “One branch of Congress has already greenlit the money. It’s time for the Senate and the White House to do the same.”

INVEST in America Act officially introduced by DeFazio

Washington, D.C. – Chair of the House Committee on Transportation and Infrastructure Peter DeFazio (D-Ore.) last week officially introduced the Investing in a New Vision for the Environment and Surface Transportation in America (INVEST in America) Act during a pro forma session in the House. The INVEST in America Act, a 5-year, nearly $500 billion investment in our nation’s infrastructure, is a key component of the Moving Forward Framework that House Democrats released earlier this year. After Committee leaders unveiled the bill text Wednesday, June 3rd, support started pouring in from a diverse array of transportation, environmental, worker, and safety advocates.

DeFazio

What advocates from around the country are saying about the INVEST in America Act:

“We applaud Chairman Peter DeFazio for listening to the needs of workers represented by SMART Transportation Division, and responding accordingly. By providing robust funding for infrastructure, passenger rail, and transit, as well as the inclusion of smart transportation policy, the Invest in America Act represents a bold step forward for our members,” said Jeremy Ferguson, president of SMART-TD.

“Title V of the INVEST in America Act is the most significant piece of railroad legislation since the Rail Safety Improvement Act of 2008,” BLET (Brotherhood of Locomotive Engineers and Trainmen) National President Dennis R. Pierce said.

“Past reauthorizations have been an exercise in spending more money and magically wishing for better outcomes with outdated policy, which was always foolish,” said Beth Osborne, director of Transportation for America. “With this new proposal from Chairman DeFazio, the INVEST in America Act, the House is charting a welcome course toward updating our country’s 1950’s approach to transportation.”

The American Public Transportation Association (APTA), on behalf of the entire public transportation industry, would like to thank House Committee on Transportation and Infrastructure Chair Peter A. DeFazio (D-OR), Chair of the Subcommittee on Highways and Transit Eleanor Holmes Norton (D-DC), and Chair of the Subcommittee on Railroads, Pipelines, and Hazardous Materials Dan Lipinski (D-IL) for their extraordinary leadership in crafting the INVEST in America Act. We strongly support the bill and its critical investments for surface transportation infrastructure, including $105 billion for public transportation and $60 billion for commuter rail, Amtrak, and other high-performance rail.”

“For too long, the needs of professional drivers and others who work in the transportation sector have been ignored by lawmakers,” Teamsters General President Jim Hoffa said. “This legislation will set the nation on the right path by making badly needed infrastructure improvements while also ensuring that workers are protected on the job.”

“On behalf of ATA members helping move 71 percent of our nation’s freight, we applaud Chairman DeFazio for fulfilling his commitment to produce a comprehensive infrastructure bill, and we look forward to working with House Ways & Means Chairman Neal to fund it—with real money,” American Trucking Association President and CEO Chris Spear.

“The National League of Cities thanks Rep. Peter DeFazio, Chair of the House Committee on Transportation and Infrastructure, for proposing legislation that eases the impacts of COVID-19 on critical transportation projects in our cities, towns, and villages. The INVEST Act would provide increased federal support for next year’s transportation projects, grow strategic transit and rail investments over the next five years and improve intergovernmental collaboration.”

Mothers Against Drunk Driving (MADD) applauds House Transportation and Infrastructure Chairman Peter DeFazio for today’s introduction of the INVEST in America Act. Chairman DeFazio is a traffic safety champion and has made saving lives a priority in this legislation.”

Stephanie Gidigbi, director of policy and partnerships for NRDC’s (Natural Resources Defense Council) Healthy People & Thriving Communities Program: “For too many years, funding from Washington has built roads and highways that divided low-income communities and communities of color without offering the transportation alternatives all of us can use. The INVEST Act offers a different path, one that leads to a more just, equitable, and climate-resilient future. Crucially, this bill ensures all communities have access to pedestrian, biking and transit options. It also will help us slash carbon pollution by investing in electric-vehicle charging stations, while ensuring that roads, bridges and transit lines are able to withstand the stronger storms and floods we must prepare for because of climate change.”

“The National Safety Council applauds House lawmakers for the INVEST in America Act, the reauthorization of the Fixing America’s Surface Transportation (FAST) Act. For too long, the United States has consistently avoided the hard choices needed to save lives on the roadways. This proposal is an opportunity for us to start making the right choices so we can save lives, because we know that all traffic deaths are preventable.”

“The Coalition for America’s Gateways & Trade Corridors (CAGTC) applauds the INVEST in America Act’s continuation of dedicated investment in our nation’s freight assets, first through the Nationally Significant Freight and Highway Program (INFRA) in Fiscal Year 2021, then through the Projects of National and Regional Significance Program (PNRS) through the remaining years of the proposal. Competitive grant programs are essential to funding large-scale goods movement infrastructure projects, which are difficult to fund through traditional distribution methods such as formula programs.”

“Unfortunately, we do not yet have a cure for COVID-19. But, we do have proven and available safety solutions to address the preventable fatalities and injuries occurring on our Nation’s roadways year after year,” said Cathy Chase, President of Advocates for Highway and Auto Safety (Advocates). “We commend Chairman DeFazio, Highways and Transit Subcommittee Chairman Eleanor Holmes Norton (D-DC) and Railroads, Pipelines and Hazardous Materials Subcommittee Chairman Dan Lipinski (D-IL) for sponsoring the INVEST in America Act and advancing important safety countermeasures.”  Advocates looks forward to working with the Committee as our review of this legislation continues.

ITS America President and CEO Shailen Bhatt: “As the association that promotes technology to reduce fatalities, congestion and emissions, ITS America is gratified to see so many positive aspects in the bill that will lead to more research in and deployment of technology, including increasing access to mobility services by making Mobility on Demand an eligible activity under transit programs.”

 “We commend Chairman Peter DeFazio (D-OR) and Eleanor Holmes Norton (D-DC) for leading the effort to address our nation’s transportation needs, including the costly backlog of transportation projects in our parks,” said Emily Douce of the National Parks Conservation Association. “Together we want to ensure park visitors can continue to experience and enjoy these places now, and for years to come.”

“The INVEST Act reflects more than a year of advocacy by the League, our partners, and our members to push for a future where our transportation system works better for all people, especially people biking and walking,” said Bill Nesper, executive director of the League of American Bicyclists.

“We know that the INVEST Act can make a difference in transportation equity across the country and the Safe Routes Partnership looks forward to supporting its passage and implementation for Safe Routes to Schools, to parks, to healthy food, and so many other essential parts of our lives,” said Cassandra Isidro, executive director of Safe Routes Partnership.

Railway Supply Institute (RSI) President Mike O’Malley: “This legislation will provide over $60 billion in much-needed funding to support substantive improvements to rail infrastructure across the country, including $29 billion for Amtrak and $19 billion for passenger rail improvement, modernization, and expansion projects. We also commend inclusion of strong funding levels for federal transit and grade crossing safety programs.  These investments will enhance safety for millions of passengers, preserve thousands of jobs, and support our domestic supply chain at this critical time.”

“On behalf of The Bus Coalition (TBC) and its members, I applaud the historic level of bus transit funding included in Chairman DeFazio’s reauthorization proposal. Buses are the backbone of transit service across America providing more than one-half of all trips on public transportation. Our customers rely on buses daily to access jobs, health care, education, and other critical destinations. The level of investment included in the bill will go a long way toward upgrading and replacing our aging and shrinking bus fleets, boost economic growth and help enhance bus service in all communities across the country,” said The Bus Coalition President Bill Carpenter.

CTAA [Community Transportation Association of America] members provide critical trips and support their vulnerable populations by acting as a lifeline. The record level of investment proposed in this bill would not only allow our rural, tribal, specialized and small-urban transit providers to continue meeting demand, but explore new and innovative ways to better serve their communities, said Scott Bogren, Executive Director of CTAA. “We applaud this bill’s important emphasis on improved bus operations and capital investment, the incorporation of meaningful improvements to procurement and vehicle disposition, and the focus on transit services for low-income and persistent poverty communities.”

“Through the INVEST in America Act, the House T&I Committee tackles many of the most critical issues facing America’s transportation system—including safety, climate and maintenance,” said Kevin Mills, Rails-to-Trails Conservancy’s vice president of policy. “The bill recognizes and advances policies to address the tragic and growing number of pedestrian and bicyclist fatalities that occur on our roads and it creates incentives to cut carbon emissions.  It makes active transportation eligible for many programs and increases dedicated investment in trails, walking and biking programs to more than $1.5 billion a year—allocating resources to the nation’s fundamental active transportation funding programs like Transportation Alternatives and the Recreational Trails Program, while ensuring that Transportation Alternatives funding remains dedicated to its intended purpose in all states. Especially exciting is a new investment to connect walking and biking facilities within our communities and between regions.”

For a running list of supporters and more information about the INVEST in America Act, click here.

U.S. House acts to block LNG transport by rail

The U.S. House of Representatives on Monday, June 24, passed an amendment that would block President Donald Trump’s Executive Order in April to the Department of Transportation to fast-track the allowance of liquid natural gas (LNG) to be transported by rail.

“In its never-ending quest to put profit ahead of people, the Trump administration is now trying to bypass long-standing requirements for transportation of LNG by putting it into 100-car trains that roll through densely-populated areas at upwards of 50 miles per hour,” said U.S. Rep. Peter DeFazio (D – Ore.), chair of the House Committee on Transportation and Infrastructure, who introduced the amendment. “This plan is beyond absurd. Should even one tank car get punctured, the results could be devastating. My amendment blocks this brazen attempt by the administration. I urge the Senate to follow suit and stop a massive catastrophe before it’s too late.”

The Pipeline and Hazardous Materials Safety Administration (PHMSA) moved ahead earlier this month with a plan to authorize six trains, of 100 or more rail tank cars, to move LNG for export through densely populated areas. DeFazio’s amendment would block this special permit as well, which currently is open for comment until July 8.

Read more on this story at Freightwaves.com.

Read an earlier story about the executive order.

House passes long-term transportation bill

U.S. Capitol Building; Capitol Building; Washington D.C.The U.S. House passed a six-year surface transportation reauthorization and reform bill that calls for more than $300 billion in federal funding for highway, transit and rail programs. If approved by the full Congress and signed by President Obama, the bill would become the first long-term transportation law passed since 2005.

The Surface Transportation Reauthorization and Reform Act of 2015 (the STRR Act) was approved by a vote of 363 to 64. It was introduced by the Transportation and Infrastructure Committee Chairman Bill Shuster (R – Pa.), Transportation and Infrastructure Committee Ranking Member Peter DeFazio (D – Ore.), Highways and Transit Subcommittee Chairman Sam Graves (R – Mo.), and Highways and Transit Subcommittee Ranking Member Eleanor Holmes Norton (D – D.C.).

“The STRR Act provides strong reforms and policies to help us improve America’s transportation system, and now we can get to work on resolving the differences with the Senate bill and carry a final measure over the goal line,” Shuster said in a press release.

Read more from Progressive Railroading.