Page "Railroad Revitalization and Regulatory Reform Act" Paragraph 20

Large shippers of goods by rail also wished to have more flexibility in the rail market.

The net result of compromise between the carriers and the shippers, and the Jimmy Carter administration ’ s push for a more competitive transport was the Staggers Act of 1980.

The Staggers Act worked from the 4R Act template, but extended its provisions.

One of the key changes from the 1976 Act was allowance of secret contracts between carriers and shippers, not limited to large-investment situations and not effectively subject to regulatory review.

According to former Congressional Budget Office analyst Christopher Barnekov, such contracts allowed the rail carriers and their shippers much more opportunity readily to develop more efficient transport arrangements which lowered costs for the carriers, yielding better returns for the carriers and lower rates for the shippers.