Bloomberg News

Chemical Shippers Challenge Rail Fees Before U.S. Regulator

October 06, 2011

(Updates with decision in third paragraph.)

Oct. 6 (Bloomberg) -- CF Industries Holdings Inc. and PPG Industries Inc. are among companies whose challenge of toxic- chemical shipping charges will be heard by the Surface Transportation Board, the U.S. agency that regulates freight railroads.

The agency announced the hearing today in the Federal Register. It is consolidating two challenges to tariffs and handling practices for carrying toxic chemicals that were brought separately against three subsidiaries of RailAmerica Inc. and against a fourth holding, Alabama Gulf Coast Railway LLC.

The legal issues raised “may ultimately affect not only the parties to the two cases before the board but others within the industry that transport, handle, receive or ship” these chemicals, the board wrote in a Sept. 30 decision.

RailAmerica, based in Jacksonville, Florida, owns 43 regional and short-line railroads that operate in 27 states and three Canadian provinces.

--Editors: Bernard Kohn, Andrea Snyder

To contact the reporter on this story: Lisa Caruso in Washington at lcaruso7@bloomberg.net

To contact the editor responsible for this story: Andrea Snyder at asnyder5@bloomberg.net


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