For Additional Information:
John Grasser (202) 463-2651
Karen Batra (202) 463-2651

FOR IMMEDIATE RELEASE
June 12, 2000

COMMODITY PRODUCERS AND SHIPPERS CALL FOR INFORMATION ON QUALITY OF RAIL SERVICES

Railroads should make available "reports that furnish meaningful information on the quality of rail service from the perspectives of railroad commodity producers and shippers," according to Joe Lema, National Mining Association's vice president of manufacturers and services. In an address to the 6th Annual Global Forum on Railroad Finance today, Lema emphasized the need for "information relevant to the quality of rail service - not simply the efficiency of train operations related to time in transit."

"It is imperative that coal shippers be able to monitor the reliability of train services to ensure that adequate equipment and crews are in place at shipment origins on schedule. Especially considering the fact that many coal shippers move of up to 15 thousand tons in a single train," Lema added. "Any failure to have trains at mine loadouts on time can both reduce the cost effectiveness of mining operations and cause losses in coal sales since many supply contracts provide for payments only when coal is delivered," Lema said.

Currently, railroads report average train speeds for a carrier’s coal traffic. "With the current practice of reporting average train speeds, certainly information exists for reporting also on the timeliness of train arrivals at mine loadouts and coal shipment delivery to power plant locations." Lema said.

At present, coal accounts for 45 percent of total freight tonnage originated by the railroads. Nine out of ten tons of coal are used to generate of electricity.

The U.S. mining industry produces coal, metals, building materials, and many other essential minerals that define the daily lives of 267 million Americans. The mining industry generates over $500 billion in total economic benefit each year and helps to sustain nearly 5 million U.S. jobs.