Section 105IAC5-1-20. Product competition

   Product competition occurs when a receiver or shipper can use a substitute(s) for the product covered by the rail rate. In that case, the railroad must compete with the railroad or other mode which carries that other product, and again, must keep its rate competitive if it wants the traffic. Evidence as to the existence of product competition should reflect the availability to the shipper or receiver of feasible substitutes and show that these substitutes can be obtained through the use of other carriers or modes without substantially greater cost, transportation or otherwise. To demonstrate whether a feasible substitute exists, the following types of evidence, among others, may be submitted:

(1) use of a substitute product(s) by the receiver or shipper in question or by others with similar needs and under similar conditions;

(2) the prices of the substitute product(s) relative to the product in question;

(3) the efficiency of the substitute product(s) relative to the product in question; and

(4) the explicit and implicit transportation costs of the substitute product(s) and the product in question.

The above factors are not intended to be exhaustive. (Indiana Department of Transportation; 105 IAC 5-1-20; 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) NOTE: Transferred from Department of Transportation (100 IAC 6-1-20) to Indiana Department of Transportation (105 IAC 5-1-20) by P.L.112-1989, SECTION 5, effective July 1, 1989.