Rail Proposal Would Benefit Fertilizer Industry

president and CEO of the Fertilizer Institute, Corey Rosebusyh explains how there are a limited number of class one rail operators that dominate major railways.

"Class one rail are the large rail carriers CSX, Union Pacific as an example- that really operate those major railways you have a number hundreds of shortline railways but in terms of long haul those class one rail carriers tend to dominate a specific market some would even say monopolize specific markets."

To give more background according to trains.com, the reciprocal switching proposal would allow shippers served by the class one railroad. To gain access to a competing class one railroad nearby, the current railroad would be forced to hand off the shipper's traffic at the closest interchange. The idea is to introduce rail competition where none exists and to help remedy poor rail service. rosenbusch says that the fertilizer industry is vested in this issue, because the industry is one of the biggest rail shipping customers.

"When you think about potash again, in the fact that we have limited reserves here 85% of the potash in the United States is imported of that import over 90% comes from Canada and a lot via the rail. So yes, we need an effective efficient competitive rail network."

Corey Rosenbusch with the Fertilizer Institute.