Louisiana has long been a powerhouse of American industry, with our railroads serving as the lifeblood of commerce and transportation. Our railways crisscross the state, connecting our communities and natural resources to the world. Yet, Congress — led by U.S. Rep. Troy Nehls, R-Texas — threatens to derail this economic artery with the Railroad Safety Enhancement Act.
The efficiency, safety and strength of our railroads have kept our economy moving for centuries. Our 2,750 miles (about the width of the United States) of freight rail lines are essential for transporting crucial goods and raw and refined materials to and from our state.
Any disruption to this transportation network, whether from federal government legislation or regulation, could have devastating consequences, especially for our energy industry, which accounts for a quarter of Louisiana’s revenues.
Imagine a scenario where onerous federal regulations cause or prolong operational delays or even halt rail service. This is not just a hypothetical concern – it is a pressing issue that could cripple our economy and our industry.
The oil and gas sector, already navigating a complex regulatory landscape in Washington due to the radical environmental agenda of the Biden administration, depends on consistent and timely rail transportation for both inbound raw materials and outbound products.
Rail cancellations and delays could result in increased costs, supply chain bottlenecks and a loss of global competitiveness.
Moreover, the ripple effects of such disruptions extend beyond the oil and gas sector. Louisiana’s agriculture, chemical manufacturing and port operations, including the Port of New Orleans, are all intricately linked to the freight rail network.
The Nehls’ bill threatens to undermine these interconnected industries, leading to job losses, increased consumer and shipper costs and instability for countless Louisianans.
Efficiency and safety must go hand in hand. While it is imperative to ensure the safety of our railroads for the good of our communities and workers, it is equally crucial to avoid implementing top-down measures that would impede the flow of commerce.
This bill, in its current form, risks tipping this delicate balance and could result in far-reaching negative consequences for our state’s economy and supply chain.
Policymakers must consider the broader implications of such heavy-handed legislation.
Louisiana’s unique position as a hub for commerce and industry means any disruption to our rail service could have disproportionately severe impacts on us. That is why it is essential to engage with industry stakeholders to listen to their concerns and develop a more balanced approach that enhances rail safety without stifling economic growth.
Instead of blanket legislation backed by organized labor — that goes far beyond recommendations from the National Transportation Safety Board — and includes provisions and regulation on everything from rail cars and crews to train size and speed, we should focus on targeted measures that address specific concerns while allowing for the flexibility needed to maintain efficient and safe rail operations.
Collaborative efforts between government, industry and rail operators can lead to innovative solutions that prioritize investment and safety without compromising the lifeline of our economy.
Louisiana’s leaders must advocate for a pragmatic approach to rail safety legislation that recognizes the unique demands and needs of our people and our state. The Railroad Safety Enhancement Act, as it stands, threatens to derail our state’s economy, progress and prosperity and it must be stopped in its tracks.
Erin Bendily is the vice president of policy and strategy for the Pelican Institute for Public Policy, which advocates for free market principles.
