H.R. 876

By John Radovich
JohnR@TexasRailAdvocates.org

This bill is a step in the right direction. Steps are what it takes to help our industries, be it the railroad or local lumber yard. Small business is what drives America, the fact is that we, the little guy don't make the press headlines. Freight that moves on the rails is not beating down the highways - the main competition of the railroad. Competition is not necessarily the correct word in that often the RR brings in merchandise for transloading and another small business does the local delivery. Traffic is the most visible issue to each of us but safety and fuel economy are just as important components. Plastics for food containers, Chlorine for your local water supply, the scrap yard that is recycling metals, and grain - maybe one of the largest impacts on rural communities. Local FM roads can not handle the strain and soon the local mill is closed which means even more road miles. The rock and sand for roads and concrete are mainstays of the rail. HR 876 gives the RR a tax credit for it's investment (part of the conversation is that all the other modes - air, road and water are subsidized by our tax dollars). This investment helps expedite the goods and promote the local economy. You'll find more details in the suggested letters that follow.

I hope you'll find time to address your local representatives and help us all breathe easier when the air is cleaner and the traffic lighter.

Thanks,

John L. Radovich
800 Jaguar Lane
Dallas TX 75226

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Draft Local Official Letter to Representative

Dear Representative _________:

I am writing to ask you to become a co-sponsor of H.R. 876 which would provide short line railroads a rehabilitation tax credit.

Preserving and strengthening our short line railroad is absolutely critical to our local economy. Our short line keeps rates competitive for our existing shippers and is one of the most important tools we have in attracting new businesses to locate in our area. In addition to the economic benefits, short lines help reduce congestion and wear and tear on our local roads.

Our area’s short line is preserving service in an area long ago abandoned by the large railroads. Their previous owners did not adequately invest in the track so that by the time they turned them over to local owners they were in bad shape. This legislation helps the short lines overcome this shortfall so that they can become the valuable economic development tool they should be. It is a very modest federal investment that will be of tremendous benefit to our (city, county, area) and I hope you will do everything you can to enact this legislation.

Sincerely,

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Draft Employee Letter to Representative

Dear Representative _________:

I am an employee of the (name) railroad which operates in your Congressional District. I am writing to ask you to co-sponsor H.R. 876 which would provide short line railroads like mine a rehabilitation tax credit.

Our railroad plays an important role in saving service in an area that the big railroads no longer serve. We work very hard to make our railroad a success. But it is difficult to really grow our business with the track in the shape it is today. We can’t bring new business to the line until we fix this problem. This legislation will help us do that and I hope you will help make it law. Thank you for your consideration.

Sincerely,

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Draft Shipper Letter to Representative

Dear Representative ___________:

We are shippers who depend on the service provided by the <Railroad Name>, the short line railroad in your district. We are writing to request your support of legislation that will help the <Railroad Name> and other short line railroads undertake much needed track rehabilitation.

The Local Railroad Rehabilitation and Investment Act of 2003, H.R. 876, would provide a $10,000/mile tax credit for rehabilitation and maintenance of railroad infrastructure. Our small businesses are absolutely dependent on efficient and competitive short line railroad service. That service is the most economical way to ship our goods and is our only connection to the nation’s main line railroad system. Absent that service, we would have to move to truck or move to a new rail served location. Moving our goods to truck will significantly increase highway congestion in our area and will increase the cost of maintaining local roads.

<Railroad Name> is similar to many short line railroads across the country, in that it once was a line owned and operated by the large Class I railroads. Since lines such as this one served local businesses such as ours, it did not receive the necessary investment in infrastructure that other more profitable lines received. Eventually, these smaller lines spun off from the large Class I network and were acquired by smaller, independent companies who preserved service to the smaller communities around the country. While these short lines make enough money to turn a small profit, they do not generate the money necessary to repair the years of neglect they suffered under previous ownership. Moreover, today the Class I railroads are moving to a new heavier 286,000-pound railcar and many of us want to use these cars because they increase our productivity. Most short line track must be upgraded to handle these heavier cars.

The funding the short lines would receive from H.R. 876 would allow them to begin the process of fixing their infrastructure, which will allow them to increase the size of their operations and eventually reach a point where they can fund their own capital projects. Such events would also produce benefits for shippers in the form of more efficient and reliable transportation services. Given the benefit this legislation would have for not only the short line railroads, but also for those of us who use the railroads to ship our goods, we hope that we can count on your support for this worthwhile bill. We thank you for both your time and consideration.

Sincerely,