Contract Carriers

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Contract Carriers

• A Federal Regulatory Guide

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What is a Contract Carrier?

• Railroads use outside vendors for most crew
  transportation services
• The transportation company is under contract
  hence the term contract carrier
• Every major railroad in the U.S. uses contract
  carriers

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Contract Carrier Use

• Railroads use contract carriers to transport
  operating crews to and from trains, and between
  terminals
• Longer runs between terminals often require more
  than one train operating crew
• Railroads have become dependent upon contract
  carrier services to keep the trains running

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National Scope

• In 2004 contract providers hauled Burlington
  Northern Santa Fe (BNSF) crews over 52,000,000
  road miles and provided over 1,500,000 hours of
  service in yard operations
• A larger railroad, Union Pacific, currently
  spends 2 million dollars a month on carry-all
  services on the southern region (Texas, Oklahoma,
  Louisiana and Arkansas)

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Contract Carrier Vehicles

• Depending on the vendor and local operational
  needs, contract carriers typically use a small
  eight passenger van, or suburban type vehicle
• Some railroads require the vehicles to be four
  wheel drive

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Commercial Motor Vehicle Federal Definition

• Commercial motor vehicle (CMV) means any
  self-propelled or towed motor vehicle used on a
  highway in interstate commerce to transport
  passengers or property when the vehicle
• (1) Has a gross vehicle weight rating or gross
  combination weight rating, or gross vehicle
  weight or gross combination weight, of 4,536 kg
  (10,001 pounds) or more, whichever is greater or
• (2) Is designed or used to transport more than 8
  passengers (including the driver) for
  compensation or

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Commercial Motor Vehicle Federal Definition

• (3) Is designed or used to transport more than 15
  passengers, including the driver, and is not used
  to transport passengers for compensation or
• (4) Is used in transporting material found by the
  Secretary of Transportation to be hazardous under
  49 U.S.C. 5103 and transported in a quantity
  requiring placarding under regulations prescribed
  by the Secretary under 49 CFR, subtitle B,
  chapter I, subchapter C

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Small Passenger CMV

• Effective November 10, 2003 The definition of a
  CMV now includes "Small Passenger" carrying
  vehicles
• These include vehicles designed or used to
  transport 9 to 15 passengers (including the
  driver) when they are
• Used in interstate commerce and
• Are directly compensated for such services and
• the vehicle is operated outside of a 75 air mile
  radius of the driver's normal work reporting
  location

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Small Passenger CMV Regulations

• The drivers and vehicles operated by motor
  carriers in this type of operation are subject to
  the same safety requirements imposed upon motor
  coach operations with the exception of the
  commercial driver's license, controlled substance
  and alcohol testing regulations
• Motor carriers operating CMVs designed or used to
  transport 9 to 15 passengers (including the
  driver) within a 75 air mile radius, whether for
  direct or indirect compensation are subject only
  to FMCSR Parts 390.15, 390.19 390.21(a) and
  390.21(b)2 (CMV marking requirements) (390.3
  (f)(6)(ii))

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Small Passenger CMV Recap

• Contact carriers are subject to certain FMCSRs
  only if
• The vehicle in use is a 9 to 15 passenger vehicle
• The service is interstate in nature
• The service is outside the 75 mile radius

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Applicable FMCSRs

• 382 Drug and Alcohol Use and Testing - No
• 383 Commercial Drivers License - No
• 387 Financial Responsibility (Insurance) - No
• 390 General Applicability Definitions - Yes
• 391 Qualifications of Drivers - Partial
• 392 Driving of Commercial Motor Vehicles - Yes
• 393 Parts and Accessories - Yes
• 395 Drivers Hours of Service - Yes
• 396 Inspection, Repair and Maintenance - Yes

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Federal Hours of Service

• GENERAL RULE - Passenger Carriers - Interstate
  (395.5)
• The following regulations only apply to passenger
  carriers and drivers operating in interstate
  commerce
• 10 Hour Rule
• Drivers are allowed to drive for 10 hours
  following 8 consecutive hours off duty.

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Federal Hours of Service

• 15 Hour Rule
• A motor carrier cannot permit or require a driver
  to drive after 15 hours are spent on duty
  following 8 consecutive hours off-duty.
• 60 and 70 Hour Rules
• A motor carrier must not permit or require a
  driver to drive after having been on duty
• 60 total duty hours in seven days
• 70 total duty hours in eight days

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Summary

• Qualification of Drivers
• Driving of Commercial Vehicles
• Parts and Accessories Necessary for Safe
  Operation
• Hours of Service
• Inspection, Repair and Maintenance

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Summary

• No insurance requirement
• No CDL requirement
• No Drug and Alcohol testing requirement
• These may be required by contract on some
  railroads

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Intrastate Contract Carriers

• Federal regulations are not applicable if the
  service is intrastate (within the state) in
  nature
• States have the authority (responsibility?) to
  regulate contract carriers operating intrastate

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Why Regulations?

• Contracts are not uniform from one railroad to
  another
• Contract carriers utilize secondary vendors, not
  signatory to the original contract
• Tragic accidents have occurred

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Any Questions?
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Thank You

• By the TSLB