Freight Railroad Operational and Safety Trends

The Staggers Rail Act of 1980 prompted many changes in the composition and operations of the freight industry. It established a federal policy that freight railroads would rely, where possible, on competition and the demand for services, rather than on regulation, to establish reasonable rates. As a result, the freight railroad industry has changed substantially over the past 20 years. Class I freight railroads have eliminated, abandoned, or sold 42 percent of their trackage between 1976 and 1996. In general, railroad safety has improved—railroad accident and fatality rates are down from their 1976 levels. While 1996 data and preliminary data for 1997 show improvements in some key indicators, it is still to early to determine whether FRA’s new approach will sustain a long-term decline in accidents and fatalities. To successfully implement the plan, FRA is working with other federal agencies, the states, and the railroads to strengthen education and research activities; enhance federal, state, and local enforcement efforts; and increase or preserve federal rail-highway crossing safety funds. In 1994, DOT established a 10-year goal of reducing the number of rail-highway grade-crossing accidents and fatalities by 50 percent. 2.) FRA plans to continue to monitor each railroad’s progress. Gaps in FRA’s New Partnering Approach

The collaborative approach that FRA has adopted for obtaining voluntary compliance with railroad safety rules has shifted some of FRA’s resources away from site-specific inspections, which have historically served as FRA’s primary means of ensuring compliance with safety regulations. In addition, the agency’s partnering or inspection efforts do not systematically address improving the workplace safety of railroad employees and ensuring that railroad bridges receive inspection oversight that is comparable to other railroad areas. As a result of their additional responsibilities, FRA inspectors have been conducting fewer site-specific inspections. These inspections have served an important oversight function. FRA relies on the voluntary cooperation of the railroads, rather than regulations, to ensure the structural integrity of the nation’s 100,700 railroad bridges.
Why GAO Did This Study

Pursuant to a congressional request, GAO discussed operational and safety trends in the rail industry over the past 20 years and how the Federal Railroad Administration (FRA) has revised its rail safety program to address these trends.

What GAO Found

GAO noted that: (1) the railroad industry has changed significantly since the Staggers Rail Act of 1980 made it federal policy that railroads would rely, where possible, on competition and the demand for services, rather than on regulation, to establish reasonable rates; (2) from 1976 to 1998, mergers and acquisitions have significantly reduced the number of class I freight railroads; (3) these larger railroads have cut costs, increased the tonnage their trains carry, downsized their workforces, and eliminated, sold, or abandoned thousands of miles of unprofitable or little-used track; (4) during this same period, overall railroad safety has improved; (5) reported accident and fatality rates are down 75 and 36 percent, respectively, from 1976 levels; (6) despite this progress, each year about 1,000 people die as a result of grade-crossing accidents and trespassing, at least 9,000 railroad employees are injured, and thousands of people are evacuated from their homes because of hazardous materials released during train accidents; (7) FRA instituted an important shift in its safety program in 1993 to address safety problems in the rail industry; (8) rather than continuing to use violations and civil penalties as the primary means to obtain compliance with railroad safety regulations, FRA decided to emphasize cooperative partnerships with other federal agencies, railroad management, labor unions, and the states; (9) the partnering efforts generally focus on the nation's larger railroads and have resulted in FRA inspectors' conducting fewer site-specific inspections of the railroad industry overall; (10) while 1996 and preliminary 1997 data, the latest data available, show improvements in safety, it is too early to determine if FRA's new approach will sustain a long-term decline in accidents and fatalities; and (11) in addition, FRA's new partnering efforts do not systematically respond to concerns about the level of workplace injuries for railroad employees and about the safety of railroad bridges.