SURFACE TRANSPORTATION BOARD AWARDS CONTRACT TO CHRISTENSEN ASSOCIATES FOR STUDY OF COMPETITION IN FREIGHT RAILROAD INDUSTRY

[STBNews@xxxxxxxxxxx]

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>From the Surface Transportation Board, Washington, D.C.
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The Surface Transportation Board (Board) announced today that it has
awarded a contract to Christensen Associates (Christensen), headquartered
in Madison, Wisconsin, to conduct an independent study that will assess the
current state of competition in the freight railroad industry in the United
States.  The study will cost approximately $1 million and will be completed
and made public in the Fall of 2008.


 Christensen, an economic and engineering consulting firm with extensive
 experience analyzing the transportation sector and other markets, will
 conduct the independent study entitled Report to the U.S. STB on
 Competition and Related Issues in the U.S. Freight Railroad Industry.  The
 study will focus on providing a comprehensive analysis of a wide range of
 issues including competition, capacity, and the interplay between the two.
 The study will also include an examination of various regulatory policy
 alternatives.


 In October 2006, the Government Accountability Office (GAO) expressed
 concerns over competition and shipper captivity in the rail industry.  The
 GAO recommended that the Board conduct a rigorous analysis of competition
 in the industry and consider actions to address problems associated with
 abuses of market power.


 The contract was awarded through a competitive bid process in accordance
 with Federal procurement regulations and procedures.


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