Railroads see Trump presidency as a boost: Update
But chemicals shippers that are battling railroads over a number of proposed new federal regulations say a Trump presidency will actually help them by creating a free market for shipping rates while increasing manufacturing and improving infrastructure.
Trump's triumph shocked many Americans after early polling indicated Democrat Hillary Clinton was favored to win. The US House of Representatives and Senate will also remain in Republican control next year, altering the prospects for federal environmental rules and other policies of outgoing President Barack Obama.
Trump "understands many of the economic challenges facing this country," the Association of American Railroads (AAR) said. "As such, we hope he will move quickly on issues such as comprehensive tax reform that reduces the corporate rate, a review and reform of the broken regulatory system and an embracement of fair and open trade."
Once Trump becomes president, he will have the power to appoint three members to the Surface Transportation Board (STB) and potentially shift its focus away from rail regulatory reforms that have been started under its current Democratic-controlled majority. The board, expanded to five members from three by Congress in legislation last year, is structured to have a majority of its members from the president's party, meaning all of Trump's appointments will be Republicans and likely less willing to regulate carriers. And with Republicans also in control of the Senate, Trump will more easily be able to push his nominees through.
AAR had recently complained to Congress that STB was overstepping regulatory boundaries set in a reauthorization act passed in December 2015. "We look forward to continued dialogue on our most important issues — including stopping unfounded regulatory efforts at the US Surface Transportation Board — and are eager to begin a new legislative session," AAR said.
But many aspects of a Trump presidency are unknown, and with a corporate-friendly attitude he might be sympathetic to the perspective of large shipping interests such as the American Chemistry Council (ACC) and National Industrial Transportation League.
Pointing to the country's vast shale gas resources, ACC said it can work with the new administration to create a "manufacturing renaissance" and to develop energy resources and infrastructure.
"Our nation's outdated freight rail regulations can no longer be allowed to shield the rail industry from the free market at the expense of manufacturers, farmers and energy producers and our ability to grow the US economy," ACC said. "We look forward to working with the Trump administration and the next Congress to ensure the STB uses its congressional mandate to adopt meaningful reforms that will put an end to regulatory protections for the rail industry and will promote greater competition amongst rail carriers."
STB chairman Dan Elliott and vice-chair Deb Miller are Democrats and Republican member Ann Begeman is due to leave at the end of the year.
A Trump presidency also means new leadership at the Federal Railroad Administration and the US Department of Transportation.
Trump and Clinton had both promoted more infrastructure spending that could bolster US ports, highways, bridges, and other projects to relieve freight bottlenecks.
Trump had promised to "implement a bold, visionary plan for a cost-effective system of roads, bridges, tunnels, airports, railroads, ports and waterways, and pipelines in the proud tradition of president Dwight Eisenhower, who championed the interstate highway system."
Railroads are mostly funded with private money, but improvements to ports and other infrastructure could relieve congestion and allow more profit for carriers. Improvements to roads and highways would bolster trucking and possibly intermodal traffic for railroads.
The American Trucking Associations today said it is looking forward to working with Trump on "long-term, sustainable infrastructure funding, tax reform and fair and free trade." The group said it has already begun meeting with the Trump transition team.
Trump is also likely to attempt a rollback of many Obama environmental policies and has promised to gut the Clean Power Plan for reducing CO2 emissions from power generation.
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