News Releases for December 2003
December 16, 2003
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Hoeven, Clark, Elevator Operators To Meet With Federal Officials In D.C. About Rail Industry Policies
Governor Criticizes BNSF's Announced Rate Increase
BISMARCK, N.D. - Gov. John Hoeven and Public Service Commissioner Tony Clark are bringing North Dakota grain elevator operators to Washington, D.C. to push for reform of railroad service for North Dakota. The Governor’s delegation will meet Wednesday with Chairman Roger Nober of the Surface Transportation Board (STB), and Bill Hawks, undersecretary for marketing and regulatory programs for the U.S. Department of Agriculture (USDA).
“We’re in Washington this week to drive home the fact to policy makers and regulators that railroad rates and shipping practices are just unacceptable,” Hoeven said. “A lack of competition has enabled the railroads to take unfair advantage of the industry. We’re taking the issue before the Surface Transportation Board to get rate relief and better service for our shippers.”
Public Service Commissioner Tony Clark said, "Rail service and pricing has been a long-time North Dakota concern, but this year's problems are especially troublesome. Record amounts of grain are piled at elevators across the state and the transportation crisis in the farm belt is threatening to reverberate throughout the economy. There are tools available for Federal relief and we want to impress upon these officials the seriousness of the problem we face on the northern plains."
“We’ve got to push the STB to take immediate action on behalf of the industry,” said Steve Strege, executive vice president of the North Dakota Grain Dealers. “This is a situation that we just can’t continue as it is.”
Jim Bobb, grain-merchandising manager at the Southwest Grain Cooperative in Gladstone; Scott Ostlie, manager of the Northwood Equity Elevator in Northwood; and Steve Strege, executive vice president of the North Dakota Grain Dealers Association, are accompanying Hoeven and Clark.
BNSF today told Hoeven’s office that shipping rates in North Dakota will rise for sunflowers, canola, beans, barley and wheat. Wheat shipped to the Pacific Northwest will remain the same or fall in price for 110 car shuttle trains.
“For months, producers and shippers in North Dakota and other states have been absorbing losses because the railroad has failed to meet its obligations to the industry,” Hoeven said. “Now -- with commodities still on the ground in some places -- BNSF proposes to increase rates for the very customers the railroad has financially injured.”
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