national farmers union

            in union is strength

DECEMBER 21, 1999



FARMERS BEWARE OF RAILWAY MERGERS



ALLAN, Sask. - CN's merger with Burlington Northern Santa Fe railway in the U.S. is unhappy news for western Canadian grain farmers. Burlington Northern has charged excessive prices for poor service where it has captive shippers. Indeed, in the mid-nineties when grain prices increased briefly, Burlington Northern raised freight rates saying quite unashamedly that they intended to capture those price gains.

"I am sure this management style will not be lost on CN," said Terry Boehm, Chair of the NFU Transportation Committee.

The whole concept of open access to railway trackage is called into doubt as a protection for farmers when railways continue to consolidate.

"Surely no one can continue to believe that deregulation of the rail system will be good for farmers," concluded Boehm.

U.S. freight rates are higher than Canadian rates and several groups have emerged to fight the injustice of the U.S. style rail system. Canadians need to take note.

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