News Releases for February 2002
February 1, 2002
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Hoeven And Grain Dealers Meet With BNSF Senior Management
BISMARCK, N.D. - Governor John Hoeven and representatives of the North Dakota Grain Dealers Association (NDGDA) met late Thursday with senior management of the Burlington Northern Santa Fe Railroad (BNSF) to seek changes in pricing and shipping practices. Hoeven and NDGDA President Keith Brandt and Vice President Clyde Krebs met with BNSF Executive Vice President Jeff Moreland, Vice President of Agricultural Products Steve Bobb and Executive Director of Government Affairs Brian Sweeney.
BNSF has consented to make confidential financial data available to an independent third-party analyst, likely an economist, chosen by the Grain Dealers Association to assess a number of issues related to the company’s new rate plan and shipping practices, including:
- the economic impact and necessity for BNSF’s inverted rate structure,
- justification for rate differentials based on shipping size,
- the economic feasibility of co-loading, and economic justification for greater discounts for co-loaded trains,
- a demurrage credit for shippers when the BNSF doesn’t meet its estimated time of arrival.
“We told BNSF that there are going to have to be changes in the rate structure to ensure that farmers and shippers get a fair shake,” Hoeven said. “Clearly, we still have a long battle ahead, but we’ve begun a constructive process that has all the stakeholders at the table.”
On other issues, BNSF agreed to the NDGDA requests for improved call-in service and notification of arrival times. BNSF promised improved repair and maintenance of rail cars to ensure biosecurity, in exchange for accurate reporting by shippers of substandard cars.
Keith Brandt, president of the NDGDA, said, “This is a first step in a series of many steps to bring equity to North Dakota shippers. We will continue to fight for what is right.”
Hoeven pledged to continue his efforts to resolve the issue. “I will be tracking this carefully in the coming months. We hope this step will eventually help bring better pricing and shipping practices to North Dakota.”
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