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First publish date: 2004-05-09

BNSF Promises Better Service to ND Grain Elevators

Burlington Northern Santa Fe Railway executives are promising better service to North Dakota grain elevators.

A bumper grain harvest exacerbated shipping delays during last year's harvest, railroad and elevator officials say. Elevators waited for rail cars that sometimes arrived more than a month late.

This year, BNSF says the wait will be cut to 10 days after an elevator requests cars.

"Nobody believes it yet, but we're going to be a 10-day railroad," said Kevin Kaufman, BNSF's vice president of agricultural products.

Elevator manager Tony Johannesen is skeptical.

"I hope they're right on that 10 days," said Johannesen, who operates the Cenex Harvest States-Dakota Prairie Ag elevator in Edgeley.

"That would be fantastic," he said. "But the proof is in the pudding."

To better handle the 2004 harvest, Texas-based BNSF is investing $250 million in new equipment, including 1,500 large-capacity hopper cars, Kaufman said Wednesday. BNSF will retire 400 old grain cars for a net increase of 1,100 cars, he said.

The railway also is revamping its agricultural operations to speed car deliveries, and has appointed an ombudsman who will work directly with grain dealers, Kaufman said.

Jonathan Long, a longtime BNSF employee and native of St. Cloud, Minn., will begin work as the ombudsman on June 1.

Long has worked for BNSF for 25 years, handling such duties as grain operations and marketing. His new job will bring him to Fargo, where he will work with grain dealers in North Dakota, South Dakota and Montana, said BNSF spokesman Gus Melonas.

Steve Strege, executive vice president of the North Dakota Grain Dealers Association, said Long's appointment may be helpful.

"If the fella has some authority, then maybe we can accomplish something," he said.

Kaufman said Long will have authority to make changes within BNSF's agricultural operations.

BNSF hopes to speed service by taking 11,000 rail cars out of the company's guaranteed service programs and offering them to elevator shippers, Kaufman said.

Shippers typically pay more for rail service under the programs because they guarantee timely service. BNSF pays shippers a penalty if cars ordered through the programs are not delivered on time.

The reorganization plan worries Strege.

BNSF plans to cut rail cars from the programs that offer grain dealers the most reliable service, he said.

Kaufman said the new service plan will provide regular-rate shippers faster service than what they currently get through the more expensive guaranteed service programs.


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