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Shelby, Montana rail rate successfully mediatedMontana Montana Farm Bureau Federation, Montana Grain Growers Association and BNSF Railway Company Dec. 2 announced that they have successfully mediated a rate dispute under the Agreement to Administer Alternative Dispute Resolution dated Jan. 30. The three parties met Dec. 1 to mediate a dispute filed by a Shelby, Mont. area producer. Bruce Wright, MFBF vice-president, announced, "BNSF agreed that the Shelby, Montana rate was greater than was justified by current market conditions. Therefore, BNSF agreed to lower the scheduled Jan.1, 2010, shuttle rate by $165 per car. This rate change will also require the adjustment of rates for shuttle loaders east along the Hi-Line to North Dakota in order to preserve current market relationships." The rate at issue was for wheat shipments from Shelby, Mont., to export facilities near Portland, Ore. The Dec. 1 mediation by the groups expanded to include rates at additional grain elevator locations to maintain market economics. A majority of Montana's wheat crop each year is loaded on ships at the mouth of the Columbia River, and nearly all is transported from origin to destination by BNSF. Representing the railroad in the mediation process was Kevin Kaufman, BNSF group vice president, Agricultural Products. "MGGA and MFBF brought some good points forward regarding grain movement and current market economics," Kaufman said. "We believe that this adjustment to rates will benefit both the producers and our railway. I am pleased with the results. And I am pleased that we were able to prove the value of the Agreement that we worked so hard to develop over the past three years with Montana grain producers. This collaborative effort has allowed us to find a solution that benefits all of our interests" Gordon Stoner, MGGA elected secretary, characterized the mediation session as "a candid discussion of grain volume, railroad revenue, and marketing opportunities for all parties." Stoner said, "We took a good look at the Shelby rates, and then extended that conversation to address the relationship between all the Hi-Line shuttle stations." Bruce Wright praised the rapid resolution of the issue. "This case was filed, prepared, and resolved within two weeks," he said. "The result is good for Montana agriculture." BNSF, Farm Bureau, and the Grain Growers have been informally mediating grain farmers' rail issues for the past five years, but agreed last January to establish a more formal process. Bing Von Bergen, MGGA president, praised the mediation team and the direction taken by the two farm groups and by BNSF management. Von Bergen said, "This is the way business should be done, with mutual decisions and mutual goals."
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