Rail industry marks 45th anniversary of Staggers Act
Today marks 45 years since President Jimmy Carter signed the Staggers Rail Act of 1980, which saved the freight-rail industry from near total collapse.
By 1980, the railroad industry was on the brink of collapse until Congress passed bipartisan legislation to partially deregulate the railroad industry and allow market-driven pricing, tailored contracts and the ability to shed unprofitable routes, according to the Association of American Railroads.
The law marked the start of the industry’s comeback story, according to the AAR. It meant railroads could finally reinvest in infrastructure, improve safety and offer better service, AAR officials said.
According to AAR, the Staggers Act has resulted in the following:
• Rail rates are 44% lower today than in 1981 (adjusted for inflation);
• Railroads have reinvested $840 billion ($1.4 trillion in today’s dollars); and
• Railroads can move 1 ton of freight nearly 500 miles on a single gallon of fuel.
The act also paved the way for short lines, which boosted first- and last-mile connections, especially in rural areas. And soon after the launch of short lines, freight railroads introduced intermodal transportation, integrating rail and trucking to offer rail shippers greater flexibility.
For more information on how Staggers changed the freight-rail industry, read Progressive Railroading Managing Editor Jeff Stagl’s ebook released in 2020 when the law crossed the 40-year mark.