105 IAC 5-1-19 - Geographic competition

Authority: IC 8-1-1-3

Affected: IC 8-3-1-3; IC 8-3-1-8

Sec. 19.

Geographic competition may be described as a restraint on rail pricing stemming from a shipper's or receiver's ability to get the product to which the rate applies from another source, or ship it to another destination. If shippers and receivers can do this, the railroad must compete with the railroad serving the alternate source or destination. Geographic competition among rail carriers is nontrivial for commodities in which transportation costs account for a substantial portion of the delivered price. To establish the potential for geographic competition, evidence should be submitted concerning the following:

(1) the number of alternative geographical sources of supply or alternative destinations available to the shipper or receiver for the product in question;

(2) the number of these alternative sources or destinations served by different carriers; and

(3) that the product available from each source or required by each destination is the same.

Such evidence is sufficient only to indicate whether effective geographic competition is possible. To determine whether effective geographic competition actually exists, evidence showing the feasibility of each source or destination and the likelihood of competition should be presented. This evidence may be as follows:

(1) the distance associated with each alternative source or destination;

(2) relevant physical characteristics of the route associated with each alternative;

(3) the access of the shipper or receiver to each transportation alternative;

(4) the capacity of each source to supply the product in question or the capacity of each destination to absorb the product in question;

(5) the transportation costs associated with each alternative;

(6) collective ratemaking among the railroads in question as evidenced by rate bureaus; and

(7) evidence of substantial rail-related investment or long-term supply contracts (more weight will be given these contracts if made prior to October 1, 1980).

It is to be emphasized that these guidelines are not intended to encompass all pertinent evidence.

Notes

105 IAC 5-1-19

Indiana Department of Transportation; 105 IAC 5-1-19; filed May 18, 1983, 2:18 p.m.: 6 IR 1210; readopted filed Nov 7, 2001, 3:20 p.m.: 25 IR 899; readopted filed Jun 14, 2007, 2:45 p.m.: 20070627-IR-105070237RFA; readopted filed Oct 2, 2013, 11:39 a.m.: 20131030-IR-105130295RFA Readopted filed 10/4/2019, 9:49 a.m.: 20191030-IR-105190422RFA

Transferred from Department of Transportation ( 100 IAC 6-1-19) to Indiana Department of Transportation (105 IAC 5-1-19) by P.L. 112-1989, SECTION 5, effective July 1, 1989.