[Congressional Record (Bound Edition), Volume 152 (2006), Part 3]
[Senate]
[Pages 3227-3228]
[From the U.S. Government Publishing Office, www.gpo.gov]




                     RAILROAD COMPETITION ACT 2005

  Mr. BAUCUS. Mr. President, I rise today to express my support for a 
fair and competitive rail system. Our agricultural economy cannot 
operate the way it should. We cannot receive the materials we need at a 
decent price and we cannot distribute our products at a fair price.
  We need to work on Federal rail policy that encourages competition. 
Farmers, businesses and consumers would all benefit from this policy.
  Montana's rail infrastructure is controlled by a single rail carrier 
controlling over 96 percent of all rail miles, over 95 percent all 
grain elevator and terminal sites, and moving more than 95 percent all 
wheat from the State.
  There is more control by a single railroad in Montana than any other 
State. The rail carrier controls and dictates the rail rates in all 
movements from Montana eastbound or westbound.
  As a result, agricultural shippers in some parts of the United States 
are paying the highest rail freight rates in exchange for sporadic and 
unreliable service. It's unacceptable. And it's not right that our 
Montana producers are expected to do business under these conditions.
  Our shippers need a clearly defined means for securing reliable 
service at a reasonable rate. It's fair. And it's the right thing to 
do.
  Agricultural shippers are unique because the party that bears the 
cost of rail transportation--the farmer--is not the party that 
negotiates the rate for that transportation--the grain elevator.
  Further, the farmer has no ability to pass on the costs associated 
with transportation to the customer.
  To ship a 26 car shipment of wheat from Medicine Lake, MT, to 
Portland is $3.42 per mile. To ship a 26 car shipment of wheat from 
Commerce City, CO, to Portland is $2.61 per mile and Atchison, KS, to 
Portland is $2.34 per mile.
  Montana rates are 31 percent higher than more distant points going to 
the

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same market because of lack of competition.
  Consider this example: A bushel of spring wheat sells for 
approximately $4.10. More than $1.00 of that amount, or up to one-third 
of the price a farmer receives, goes to pay for rail transportation.
  Stated another way, the average wheat farmer is working for the 
railroads up to four months out of the year.
  We need to establish a national rail policy that encourages 
competition that helps both producers and consumers alike.
  I'm committed to doing all I can to promote competition and to help 
our Montana producers.
  On Captive Rail Day, I urge my Senate colleagues to join together and 
work on legislation that will create a more fair and competitive 
freight rail system.

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