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CN, are you listening?
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Appleton Wi POST CRESCENT Mar. 27, 2005 <br />Patrick Schillinger column: Railroad service sending businesses on wrong track <br /> <br />If you thought railroads were only a necessary part of our transportation needs in the 1800s you were dead wrong. <br /> <br />Today’s economy depends on the use of railroads; they are an economical and efficient means of transporting goods and products, especially in places like Wisconsin which are not destination points for other transportation services. <br /> <br />The paper industry in particular relies on rail service for both importing raw materials and for exporting finished products. <br /> <br />Transportation is one of the four top costs for the paper industry and since 2000 rail costs have escalated dramatically and rail service has deteriorated. In addition, the supply of much needed box and centerbeam cars has decreased. This has meant significant cost increases and service delays to the paper industry which is already under tremendous stress to reduce costs. <br /> <br />Unfortunately, truck service is not a viable alternative. It takes 2½ trucks to equal one rail car and even if a truck is available (there’s a national truck shortage) it is much more expensive compared to rail service. Additionally, increasing truck service means putting more vehicles on the road. <br /> <br />There is one mill in Wisconsin that has had to add 500 trucks monthly due to reduced rail service and increased rail costs. <br /> <br />This is truly a public policy crisis. <br /> <br />Since 1980, more than 40 major railroads have been consolidated to seven. In Wisconsin, the Canadian National (CN) is the only class one railroad to serve about half of the state and it serves almost all of our paper mills. It has, for all intents and purposes, a monopoly in paper country. <br /> <br />And the CN is using this leverage to raise prices exorbitantly and to decrease both the level of service it provides to many of its customers and the number of days it provides services. <br /> <br />One paper mill in Wisconsin is shutting down a machine and laying off 46 people due to, in large part, the increased cost of rail service. <br /> <br />It is that critical. And it doesn’t only affect the paper industry in Wisconsin. It also affects the agricultural industry, warehousing, the trucking industry, the forest products industries and many other businesses in this state that need to ship goods and products. <br /> <br />Something needs to be done. <br /> <br />That is why our industry has joined with other businesses and industries to push for federal legislation that will attempt to curb these devastating practices. <br /> <br />Our group is supporting two legislative proposals: <br /> <br />• Removal of the antitrust immunity railroads enjoy <br /> <br />• The Railroad Competition Act of 2005 <br /> <br />Luckily, we have three Congressmen, who will be key to these discussions. U.S. Rep. Jim Sensenbrenner, R-Menominee Falls, who chairs the House Judiciary Committee, is spearheading the pu***o remove the antitrust immunity of the railroads. <br /> <br />U.S. Rep. Mark Green, R-Green Bay, serves on the Judiciary Committee, and with so many paper mills in his district, he will be an important ally. <br /> <br />Finally, U.S. Rep. Tom Petri, R-Fond du Lac, is an influential member of the Transportation Committee and his support is vital for passage of the Railroad Competition Act. <br /> <br />If your business is affected by rail costs, I encourage you to contact these congressmen – or contact me and join our coalition. <br /> <br />At the turn of the 20th century, Bob La Follette began his Progressive movement in Wisconsin fighting big corporate monopolies like the railroads which were reeking havoc with our economy. <br /> <br />Perhaps another round of fighting is needed this century. <br /> <br />Patrick Schillinger is president of the Neenah-based Wisconsin Paper Council. He can be reached by phone at 920-722-1500 or by e-mail at schillinger@wipapercouncil.org. <br />
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