| FOR IMMEDIATE RELEASE | CONTACT: Ron Zellar |
| January 9, 2004 | (406) 444-3684
TTY (406) 444-4687 |
BNSF Exempts Some Contracts from Rate Hike
HELENA, Mont. — Burlington Northern Santa Fe's chairman has informed Governor Judy Martz that the railroad will exempt some existing contracts from shipping rate increases the company announced in December.
Rail rates in force prior to Dec. 31, 2003 will continue to be offered on covered hopper cars ordered before Dec.16, 2003 in cases in which orders have not yet been filled, says the Jan. 8 letter from Matthew K. Rose, BNSF chairman and chief executive officer.
Governor Martz says the announcement is good news for elevator operators who have had to wait for rail cars because of a backlog of up to 35 days in orders placed during and after the busy harvest season.
"We continue to urge BNSF to reconsider its rate increase, which grain industry officials inform us will raise shipping costs by 3 cents to 6 cents per bushel at some Montana elevators, over rates that had been in place the past two years," Martz says.
BNSF announced in December that, due to increased demand, it was canceling a rate reduction that had been in place since early 2001. The change will mean an increase of $100 per hopper car in most parts of the BNSF system. However, the increase in Montana will be higher at some elevators, according to grain industry officials.
Producers also continue to pay a 2.5 percent fuel surcharge when shipping grain on the BNSF system, notes Ralph Peck, director of the Montana Department of Agriculture.
"The change BNSF announced this week will help those elevator operators
who quoted prices based on expected shipping costs," Peck says. "All
of these added costs eventually filter down and are paid by producers, however."
