You may have seen that about two weeks ago several Watco Team Members and one of our Customers joined nearly 700 other rail industry representatives and descended on Capitol Hill.
What may have been unclear was exactly why we were there and what we were doing. March 7 was the 2018 American Short Line and Regional Railroad Association (ASLRRA) Railroad Day on Capitol Hill. The purpose was to bring people from across industries together to inform Congress about some of the largest concerns we have about policy that affects the rail industry.
This year’s record turnout saw individuals from insurance companies, suppliers, maintenance of way contractors, customers representing various sectors, and, of course, Class I and short line railroads from across the country.
Between 9 a.m. and 4:30 p.m., the different groups met with a total of 330 members of the Senate and House of Representatives and their staffs. We had three main talking points.
The first was permanence for the 45G tax credit. The credit allows short line railroads a tax credit of $.50 for every dollar spent on track and bridge maintenance, up to $3,500 per mile. This credit allow small railroads, especially those serving customers in rural communities, to keep their track safer and traffic moving, and is important because those railroads are investing their own capital to do so.
The second concern was truck weights. We asked Congress to oppose efforts to increase the maximum weights and sizes of trucks on America’s roads and highways, citing safety concerns, congestion, and roadway wear-and-tear. Currently, trucks don’t pay their fair share of the tax burden to repair the roads they drive on and larger, heavier trucks will pay even less.
The final topic discussed was balanced regulation. Since the industry was deregulated in 1980, the rail industry has boomed and become the largest, most efficient freight network in the world. There were whispers of potential new regulations on the horizon, and we asked that nothing be done quickly and without input. If it’s not broke, don’t try to fix it.
Beyond the main talking points, many officials had general questions about how the industry works and progress on Postivie Train Control (PTC). Overall, the meetings were very productive. On the 45G front, Kansas Representative Lynn Jenkins’ bill, the Building Rail Access for Customers and the Economy, or BRACE Act, now has 258 cosponsors in the House. Idaho Senator Mike Crapo’s Senate bill now has 56 cosponsors, making the effort to extend 45G one of the most bipartisan supported efforts to date. The other two key points were generally met with understanding and open minds.
Railroad Day always has an agenda and issues to discuss, but just as important is that our elected officials see how many people across the country that the rail industry impacts. It takes away the Washington, DC, lobbyists and lets them talk to engineers from Norfolk Southern, railroad tie suppliers, insurance analysts, and Watco grain Customers from Kansas. It puts constituents and real faces with issues that otherwise may not have been top of mind, and that’s what makes it effective.
Attending Railroad Day on behalf of Watco were: executive vice president Ed McKechnie, VP of government and industry relations Laura McNichol, VP of commercial Doug Story, VP of operations Bill Goldsberry, AVP of government and industry relations Ken Lucht, senior commercial assistant Jana Austerman, communications director Tracie VanBecelaere, commercial director KR McKenzie, commercial director Brian Spiller, commercial manager Mike Wastchak, former president and CEO of the Kansas Feed & Grain Association Tom Tunnell, and digital communication & social media specialist Jay Benedict.