 Letter
from five Governors to BNSF (5-10-02) Mathew Rose Mr. Rose: As
governors of states with prominent agriculture industries, we urge the
Burlington Northern Santa Fe Railway to find an equitable solution to
its preferential grain shipping rates policy.
We recognize the importance of an efficient and vital rail shipping
system; however, we believe that in some corridors BNSF is using its
market dominance to charge excessive rates to captive shippers and to
provide advantageous preferential rates to a handful of large-scale
shippers. BNSF is also using its market power to impact grain markets by
offering a discounted inverse rate for shippers that move grain greater
distances. We request that your company immediately evaluate the
negative consequences of selective grain shipping rates and commit to
adjusting them.
Our states are not opposed to shuttle shipment of agriculture products;
however, we ask that the rate spreads be consistent and equitable. Your
current business practices have the potential to negatively impact grain
markets and rural communities as smaller elevators struggle to compete.
These practices also shift the burden of shipping the bulky commodities
to the states’ highway infrastructure, which contributes to road
deterioration and distorts longstanding traditional grain movement
patterns. We
ask BNSF to administer its pricing methods in a way that is fair to all
of our railroad customers and grain elevators. In the absence of
reasonable rate adjustments, we will have no other recourse but to look
for alternatives that will provide equitable resolution of this issue,
including support of federal regulatory intervention.
Signed, John
Hoeven Judy
Martz William
J. Janklow Mike
Johanns Jim
Geringer
|