Franken urges Obama to take on freight rail monopolies

Sen. Al Franken (D-Minn.) urged President Obama on Monday to take steps to stop monopolies in the freight rail industry.

“Farmers and businesses across Minnesota rely on freight rail to ship out their products, but a lack of competition in the rail industry harms shippers and drives up prices for their consumers,” Franken said Monday. “The freight rail monopolies that control much of our shipping infrastructure have harmed job creation and economic growth all over Minnesota and all over the country.”

Franken sent Obama a letter calling for the president to appoint a senior official to coordinate efforts to address rail monopolies and to suggest federal policies that could alleviate the problem.

In the letter, Franken cited analysis showing that only one freight rail company serves 78 percent of railroad stations within the United States.

“This lack of competition in our national freight rail transportation system and the resulting railroad monopoly power over a significant portion of annual railroad freight movement create significant problems for our state and national economies,” Franken wrote.

Franken said that more freight rail competition would help increase U.S. exports and create jobs.

“I believe strongly that efforts to grow our national economy and create jobs are hampered by the freight rail monopoly problem,” Franken said. “I look forward to working with you to address this problem in the coming Congress.”

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