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Mandatory Reciprocal Switching
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<p><span style="font-family:verdana,geneva;font-size:small;">Maybe there needs to be a distinction made between reciprocal switching and <span style="text-decoration:underline;">mandatory</span> reciprocal switching.<b> </b>Here is a quotation from one of the explanatory reference links I posted earlier. It suggests that (mandatory) reciprocal switching is a form of open access: <b></b></span></p> <p><span style="font-family:verdana,geneva;font-size:small;">(Quote)</span></p> <p><span style="font-family:verdana,geneva;font-size:small;"> </span></p> <p><span style="font-family:verdana,geneva;font-size:medium;"><b>"Open Access" Proposals</b></span></p> <p><span style="font-family:verdana,geneva;font-size:medium;">Unhappy with the Board’s approach to rate reasonableness and competitive access, some shippers have sought to circumvent the Board’s rules by demanding what they call "open access". Open access proponents are not always clear what they mean by that term, but more regulation is always involved. They do not seek a requirement that railroads freely interchange traffic with each other; mandatory interchange of traffic has long been required in the rail industry. Instead, they want to dictate the terms on which railroads deal with each other—without having to demonstrate that there is any competitive need for this interference in the railroads’ business dealings.</span></p> <p><span style="font-family:verdana,geneva;font-size:medium;"><b>Reciprocal Switching.</b> This is not the first time that proposals have been put forward to micro-manage the railroads’ joint operations. Even as the Staggers Act was being considered by Congress, a legislative proposal was made to require railroads to offer a particular form of access—reciprocal switching—at every terminal area in the country. Under the proposal, a customer in a terminal area might require the railroad serving its facility to switch its freight to another carrier at below-market prices. Proponents argued that this mandate would promote rail-to-rail competition. Congress rejected that proposal, but it did give the Board the authority to impose reciprocal switching regulation on a case-by-case basis, if it found that the regulation was in the public interest.</span></p>
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