(The following article by Jennifer McKee was posted on the Montana Forum website on January 31.)
HELENA, Mont. — Gov. Judy Martz this week questioned why the state?s largest railroad needed to raise shipping rates for Montana farmers in the same month that the railroad posted record profits.
Beginning Jan. 1, the Burlington Northern Santa Fe Railway ? which moves about three-quarters of Montana?s voluminous grain crop to Pacific ports ? started charging farmers in Montana an extra six cents a bushel to ship grain. The change, which was the result of a canceled shipping rate reduction, was expected to cost Montana farmers about $5 million, although some estimates were higher.
Less than a month after the rate increase, BNSF announced it?s fourth-quarter revenues for 2003 were a record-breaking $2.46 billion. Agriculture shipping was up 7 percent to $419 million, company records show.
In a letter dated Jan. 29 to Matthew Rose, the chairman of BNSF, Martz questioned why the company needed to raise its rates.
“This indicates the December rate increase was not necessary and is made possible only because BNSF is taking advantage of the lack of (rail) competition in agricultural states such as Montana,” Martz?s letter read.
Martz, who began her letter by congratulating Rose for a profitable year, also urged him to cancel the increases and said she supports national legislation to mandate competition in the railroad industry.
Gus Melonas, a company spokesman in Seattle, said the company has not yet seen the letter and could not comment on it.