News Releases for May 2008
May 02, 2008
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Co-Load Concept For Minot And Fargo Container Shipping Takes Big Step Forward
BISMARCK, N.D. - Gov. John Hoeven today announced that BNSF Railway has equalized rates for shipments of bulk and bagged agriculture commodities from Minot, Dilworth and St. Paul to Pacific Northwest ports; and has also equalized the repositioning charge for getting empty containers to those communities. Hoeven says that means that containers of ag commodities being shipped by container from Minot and Fargo/Dilworth will be charged rates comparable to loads leaving from Minneapolis St. Paul.
Hoeven is working with the Minot facility as part of the state’s comprehensive, statewide rail strategy, which includes a co-load concept between the Fargo and Minot areas. The two facilities could cooperate to fill a full train with containers in order to secure the lower rate.
“This is a major step forward for the co-load concept,” Hoeven said. “I pressed BNSF for equalized rates when we met with them in February at their in Fort Worth headquarters, and now they’ve agreed to implement the new rate schedule that they charge container companies.”
In recent years, North Dakota shippers have been disadvantaged by either very high origination rates from North Dakota, or having to truck loads to Minneapolis or Chicago to then be placed on a train. Hoeven traveled to Fort Worth in early February to meet with senior BNSF Railway officials, including CEO, President and Chairman Matt Rose, about improving rates and service to North Dakota inter-modal shippers, as well as other North Dakota rail issues. The Governor specifically pressed for an agreement by the BNSF to offer “Minneapolis-like” charges for empty containers coming into and loaded freight originating from Dilworth and Minot.
“Since 2000, North Dakota exports have increased by 225 percent, and last year, we had the highest rate of increase in the nation,” Hoeven said. “It is critical that our producers have the resources they need to get their identity preserved or specialty grains to foreign markets, especially considering the volume and variety of North Dakota exports relying on this service.”
Hoeven said the move should be an incentive for inter-modal companies to make additional containers available for North Dakota shippers moving product to export destinations. Lt. Gov. Jack Dalrymple discussed the development with shipping line operators when he led a state trade mission to Korea in March.
“This is a big step forward toward establishing inter-modal service in the Red River Valley and initiating service to Minot’s newly constructed Port of North Dakota,” Hoeven said. “BNSF has seen the wisdom of equalizing rates for commodity container shipments. We will continue to work toward achieving fair rates for manufactured goods.”
Hoeven said that he will be meeting with senior officials from BNSF next week to learn more details of the rate structure that will be offered to the container owners, and to urge the railroad to continue working with the steamship companies, who own the containers, to make empty boxes available in Dilworth and Minot.
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