Some of our clients are seeing increases by 100% in their monthly railroad repair bills. Through audits and investigations, we are witnessing misuse of the AAR Rules by some of these Running Repair Agents (RRAs) on cars moving through the interchange system. The intent of the Interchange Rules is a “guide to the fair and proper handling contained therein for the interchange of freight traffic” [1]. Some of these RRAs are targeting minor infractions and less maintained cars passing through the rail system. They inspect the car then bad order the car legitimately for a rule violation. After making the repair they scrutinize the car for other work so they can make the repairs more profitable, with weld repairs being the biggest contributor. Some RRAs are making repairs to privately owned cars without regard to the car owner under the RRA authority the railroads have given them.
[1] Field Manual of the AAR Interchange Rules, Rule A.1
Why are RRAs doing this and what can be done?
