(The Associated Press circulated the following story on December 16.)
FORT WORTH, Texas — Burlington Northern Santa Fe Railway, the state?s primary rail shipper, has announced plans to raise grain shipping rates, a decision Montana agriculture officials say will hurt farmers and the economy.
Agriculture Director Ralph Peck said Monday the move would raise shipping costs an average of 6 cents a bushel in the state. “Any way you look at it, it?s not good for Montana,” he said. “I believe BN saw another way to improve their bottom line at the expense of Montanans.”
Gus Melonas, a BNSF spokesman, disagreed, saying the railroad considers itself a partner with the industry.
“Grain traffic demand has increased dramatically this year, and current rates do not reflect current market conditions,” he said.
He said rates also are going up in North Dakota.
Melonas said BNSF has made a series of temporary rate reductions on wheat moving from Montana to the Pacific Northwest and California in recent years, with the reductions resulting in savings of up to $300 a car. The current reduction will expire Dec. 31, he said.
“BNSF has chosen to modify its base rates to limit any effective increase to a maximum of $100 per car,” he said.
Since August, he said, the railroad has added locomotives to the grain service and added to its grain car fleet. This year, BNSF has hired personnel, he said, and made improvements along the grain market corridor, with a goal of improving customer service.
Rates with 110-car shuttle elevators are negotiated, state agriculture officials said, and the existing rates will be in place until the contracts are up.
Jim Christianson, executive vice president of the Montana Wheat & Barley Committee, said BNSF?s planned increase underscores the need for rail competition in the state. “That?s the number one problem in Montana ever since God made dirt,” he said.
Gov. Judy Martz said she planned to follow up on the rate decision with BNSF officials.
“Agriculture is Montana?s number one industry and the ability to ship agriculture products to markets at competitive prices is critical,” she said. “And, very simply, this is a fairness issue.”