10/19/06 STB holding hearing on grain by rail

Farm and Ranch October 19, 2006 A Government Accountability Office report on rates, competition and capacity issues has prompted the U.S. Surface Transportation Board to schedule a public hearing on issues related to transportation of grain by railroad. Glen Squires who handles transportation issues for the Washington Wheat Commission explains what the GAO report said about grain rates. Squires: "This General Accounting Office study concluded that captive shippers are subject nationally to higher rates than non-captive. And in the situation where we just have two railroads here in the West many shippers are captive to one of those railroad. The Surface Transportation Board is going to start looking at that." The STB hearing is scheduled for November 2nd in Washington D.C. and Squires says the wheat industry will be providing input. Squires: "Through the Alliance for Rail Competition and through a transportation consultant the wheat commissions, not just the Washington Wheat Commission, but Idaho, Nebraska, North Dakota, Kansas, Colorado will be participating. The National Association of Wheat Growers will also be participating in those hearings." Earlier this year the STB took action against railroads for their fuel surcharges requiring they be based on actual fuel cost increases. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.