Governor Schweitzer Files Comments with STB on Behalf of Montana Rail Shippers

Press Release

Governor Schweitzer Files Comments with STB on Behalf of Montana Rail Shippers

Governor Brian Schweitzer last week filed comments with the federal Surface Transportation Board calling for changes in railroad industry cost of capital standards. He was joined by numerous groups of rail shippers of agricultural commodities from Montana and other states, in a proceeding entitled Ex Parte No. 664.

The proceeding is important for farm producers and other commodity shippers because it may lead to recognition that the nation's major railroads are financially strong, and no longer need to be protected from competition.

"Like those of us in farming, logging, mining, and other businesses, railroads should face healthy, competitive pressures in the marketplace. Where effective rail competition is lacking, as in Montana, railroads must be subject to effective regulation to prevent excessive rates and poor service."

For decades, erroneous costs of capital standards have exaggerated railroads' financial weaknesses, even as they had no trouble raising capital in the financial markets. If the Surface Transportation Board adopts the changes supported by Governor Schweitzer, the concerns of captive shippers may finally begin to receive more attention in Washington, and BNSF may become more responsive to its Montana customers' concerns.

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