Efforts on wrong track with railroad mandates

Raymond Keating
Raymond Keating

As chief of staff to then President-elect Barack Obama, Rahm Emanuel infamously declared, “You never want a serious crisis to go to waste. And what I mean by that, it’s an opportunity to do things that you think you could not do before.”

While cynical, it’s an unfortunate rule in politics. Something terrible occurs and those who seek action — such as increased government regulation or benefits — kick into high gear in linking the tragedy to their cause.

That’s apparently been the case with railroad labor unions out to expand their reach and membership in the aftermath of the Norfolk Southern derailment in East Palestine, Ohio. They found some willing members of Congress with a bill introduced by U.S. Sens. Sherrod Brown and J.D. Vance, both from Ohio.

Railroad unions have long pushed for government to mandate crew sizes. This legislation would do just that. This is being done in the name of “safety,” although there’s no evidence to support this assertion.

It is worth highlighting some key points the Small Business & Entrepreneurship Council pointed out in an analysis relating to what the Federal Railroad Administration has considered in terms of the size of train crews and where crew members should be located on moving trains. The same points raised in that piece apply to legislation to mandate crew size.

The Small Business Administration Office of Advocacy sent comments to the FRA raising serious issues and concerns, among them:

“According to information presented by the American Short Line and Regional Railroad Association at the roundtable and public hearing, there are some 696 short line freight railroads (Class II and III) in the United States, and all meet the SBA definition of a small business.”

“There are currently no specific FRA regulations on crew size, but all Class I and many Class II and III railroads operate with a two-person crew. However, many short line railroads operate with one person in the locomotive cab and another in a truck or utility vehicle performing switching and other business and operational tasks and who may be assigned to multiple trains. FRA has repeatedly acknowledged that it lacks safety data to determine whether one-person crews are less safe than multi-person crews.”

“Based on information provided at the roundtable and public hearing, it appears that FRA has significantly understated the cost to and the number of small businesses that would be impacted by the proposed rule.” At another point, it is noted: “Survey data indicates that there are actually some 420 railroads operating with one crew in the locomotive train operations. If several hundred petitions for special approval would have to be filed, this could dramatically increase the cost to both small entities and the agency to process these petitions.”

“A number of small businesses who spoke at the roundtable and public hearing stated that they have been conducting one-person crew operations for long periods of time with few if any safety incidents. They said that small railroads operate at very small margins and that any increase in costs could lead customers to switch to trucks (i.e., modal shift) that are less safe.”

Marc Scribner, a senior transportation policy analyst at the Reason Foundation, wrote: “During the past decade, federal and state policymakers have pursued minimum crew size rules for railroads operating in their jurisdictions. Despite the appeals to safety made by proponents of these regulations, the available evidence does not support these claims. In addition, imposing crew size minimums on economic grounds is likely to backfire by reducing the competitiveness and long-term viability of rail in the broader transportation sector.”

As the Columbus Dispatch reported: “The train that derailed in East Palestine had three crew members on board, and the National Transportation Safety Board has not identified problems with the crew’s response. Initial findings from the NTSB indicate that an overheated wheel bearing was responsible for the derailment.”

Despite the Ohio derailment, the American Association of Railroads reported: “The last decade was the safest ever for U.S. railroads, with mainline and hazmat accident rates at an all-time low.”

It’s important to understand the federal government mandating crew member size and operations will achieve nothing in terms of safety, but the costs will fall heavily on small businesses within the industry. Those served by freight rail who would face increased costs, fewer choices within the transportation sector and diminished supply chain performance.

In the end, government mandating crew sizes and operations isn’t about safety, but instead unions playing politics. Work and investments must continue to build on the vast improvements achieved in rail safety. And as the industry has made clear in recent decades, investments in technology, infrastructure and operations improve safety and performance. Government disincentivizing investment and innovation due to politics makes no sense whatsoever.