The New Jersey Business & Industry Association (NJBIA), the New Jersey State Chamber of Commerce, and the Chemistry Council of New Jersey have jointly called on Governor Phil Murphy to veto or refrain from signing a bill that would place new requirements on the state’s railroad freight industry.
Senate Bill S-3389, sponsored by Senators Diegnan and Mukherji, is intended to improve freight rail safety. However, these business groups argue that its mandates could negatively impact both safety and operations by imposing arbitrary rules that do not account for current railroad practices or recent technological advancements.
The legislation is currently awaiting action from Governor Murphy before his term ends later this month.
“Rail safety is critically important, and we welcome thoughtful engagement on this issue,” the organizations stated in a letter sent this week. “(But) provisions such as rigid train-length limitations and mandated crew sizes would significantly increase operational costs and require trains to be broken up at New Jersey’s borders.”
“These disruptions would heighten safety risks, delay freight movement, and impair supply chains that are essential to New Jersey’s economy, including those supporting energy production, chemical manufacturing, agriculture, and consumer goods.”
“Ultimately, these costs would be passed on to businesses and communities across the state,” they wrote.
The proposed bill includes a requirement for two-person crews when transporting certain hazardous materials or specific quantities of loaded freight cars. The groups say many of these issues are already covered by federal regulations.
“Many of these matters are already governed by comprehensive federal regulations and are subject to federal preemption,” they wrote. “As a result, Senate Bill No. 3389 would create regulatory uncertainty, invite legal challenges, and complicate compliance efforts.”
“In addition, the bill’s labor-related provisions risk generating confusion rather than clarity in safety oversight and enforcement.”
“These concerns are particularly significant given New Jersey’s role as a national logistics hub. The Port of New York and New Jersey is the largest port on the East Coast and among the busiest in the nation,” according to their statement.
The NJBIA represents employers across various sectors in New Jersey—including manufacturing, retail, wholesale trade, contracting, services—and promotes business success through advocacy efforts as well as partnerships with government entities and academic institutions. It operates as the largest statewide employer association in the United States according to its official website.
To read the full letter from NJBIA, State Chamber of Commerce and Chemistry Council of New Jersey regarding Senate Bill S-3389 click here.
