Rail Transportation
The firm’s lawyers have represented electric utilities and other large users of railroad transportation on a wide range of regulatory and transactional issues related to the movement of coal and other commodities by rail. Our representation of clients in rail transportation matters has resulted in the achievement of efficient rail service and millions of dollars in reduced rail transportation costs. We have experience in the following areas:
Strategic Planning and Execution of Cost-Savings Initiatives: The firm’s lawyers have substantial experience in assisting utilities and other large users of rail transportation to develop and execute strategies for lowering rail transportation costs. Such strategies have included (1) rail transportation contract negotiation; (2) the creation of competitive leverage through rail spur construction and/or the acquisition of rail lines or trackage rights, and; (3) coal and natural gas supply contract negotiation. Our services have also included analysis of the STB’s jurisdiction, Federal Railroad Administration jurisdiction, Railroad Retirement Board jurisdiction, state and local jurisdiction or preemption, and applicable environmental review requirements.
Railroad Transportation Contracting: The firm has helped utility and other shippers negotiate and draft rail transportation contracts involving all of the major Class I carriers as well as short line railroads. Our experience in this area has been for shippers with competitive options as well as shippers captive to a single carrier for their rail service. This experience has enabled the firm to gain a thorough understanding of the rail transportation industry and the evolution of railroad contracting. In addition to negotiating and drafting contracts, the firm has helped clients administer their existing contracts and resolve contractual disputes through negotiation and, if necessary litigation before courts and arbitration panels.
Rail Construction/Acquisition of Track or Trackage Rights: The firm pioneered the method of lowering fuel costs by constructing rail lines to competing railroads. In fact, in 1990 Troutman Sanders represented the first shipper to build a rail line out to a competing railroad. We have assisted clients in construction projects that require or benefit from Surface Transportation Board authority and in construction projects that fall outside of Surface Transportation Board authority. We have also assisted clients in gaining competitive rail service by purchase or lease of rail lines or by obtaining trackage rights which can be used by a competitive carrier.
Stand-Alone Cost Coal Rate Cases at the Surface Transportation Board: The firm has represented complainants in stand-alone cost rate cases before the STB. We have also helped numerous other large shipper clients evaluate whether to pursue regulatory relief for exorbitant rail rates imposed by the carrier servicing their facility.