News Releases for March 2008
March 07, 2008
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Making Progress On Co-Load Concept For Minot And Fargo Container Shipping
BISMARCK, N.D. - Gov. John Hoeven today announced that BNSF Railway has agreed to reduce its rates for the shipment of containers of bulk commodities originating from Minot and Fargo/Dilworth levels comparable with loads leaving from Minneapolis. Hoeven has been working on a comprehensive, statewide rail strategy, which includes a co-load concept between the Fargo and Minot areas. The two facilities would cooperate to fill a full train with containers in order to secure the lower rate.
“This is a positive announcement from the BNSF,” Hoeven said. “It’s one of the actions I specifically asked them to implement when we were in Fort Worth last month to meet with them at their corporate headquarters.”
In early February, Hoeven traveled to meet with senior BNSF Railway officials, including CEO, President and Chairman Matt Rose, about improving rates and service to North Dakota intermodal shippers. Among the requests of the North Dakota group was agreement by the BNSF to offer “Minneapolis-like” charges for freight originating from Dilworth and Minot. 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.
“Last year, North Dakota exports increased by 34 percent, the highest rate of increase in the nation,” Hoeven said. “This is a vitally important issue for our producers, considering the volume and variety of North Dakota exporters needing to get their identity preserved or specialty grains to market,” Hoeven said.
Hoeven said the news will hopefully catch the attention of the intermodal companies and encourage them to place additional containers here for North Dakota shippers to move product to export destinations. Lt. Gov. Jack Dalrymple plans to meet with shipping line operators when he leads a state trade mission to Korea in two weeks.
“This is a good first step toward establishing inter-model service in the Red River Valley and initiating service to Minot with the newly constructed Port of North Dakota,” Hoeven said. “We compliment BNSF for recognizing the disparity in rates that previously existed for shipments leaving Minneapolis/St. Paul, and we hope they will continue to work with us to implement fair rates for manufactured goods, as well as commodities. Considering the cost of moving empty containers from Chicago to Fargo/Dilworth and Minot, this makes sense to the overall freight rate.”
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