TEGMA Newsletter
December 2012
In This Issue
2013 Annual Meeting
KCS: 125th Anniversary
Gavilon New Headquarters
CME: Continued Floor Trading
UP Advances Trackwork
Thank You Sponsors
Longshoreman Contract Negotiations in the Northwest 
The potential strike or lockout at Northwest grain terminals is off for at least a day as a negotiations continue between labor and management. 

The grain terminal negotiators plan to respond soon to comments received from the longshore union on a contract offer they call final. 

The six terminals involved along the Columbia River and on Puget Sound handle a quarter of the nation's grain exports. 

submitted comments on a "last, best and final offer" from the terminal owners hours before it expires at midnight Wednesday, Nov 28. 

Representatives of the Pacific Northwest Grain Handlers Association met Nov 28 and issued a brief statement saying they would respond Thursday, Nov 29. 

Source: The Oregonian
TEGMA Welcomes
New Member

TEGMA is pleased to welcome two new members since the last newsletter.


The David J Joseph Company

Associate Member

Representative: Matt Siemer


The David J. Joseph Company is a large company headquartered in Cincinnati, Ohio.  DJJ has a rail car leasing group and leases hopper cars to the grain industry.  DJJ is interested in developing business relationships with Western grain industry companies. 





American Railcar

Associate Member

Representative: Alan Lullman


American Railcar Industries, Inc. (ARI) has its headquarters in Saint Charles, Missouri outside of Saint Louis on the grounds of American Car and Foundry's original manufacturing center.  ARI was formed in 1994 from the acquisition of railcar component manufacturing and railcar maintenance assets from ACF Industries. Today ARI, a publicly held corporation, is a fully integrated supplier to the North American freight car market.



Fall Transportation Symposium 2013

TEGMA's Annual Fall Transportation Symposium, will be held at the  Westin Crown Center in Kansas City, Missouri, September 12 & 13, 2013. 



Mark your calendars!

TEGMA Leadership




Todd McQueen

The Scoular Company 


First Vice Chairman

Mark Huston

Louis Dreyfus Commodities 


Second Vice Chairman

Brian Mehrmann

Gavilon Grain 



Board of Directors


Greg Edelblute

Cereal Food Processors


Roger Fray

West Central Cooperative


Pete Goetzmann

ADM Grain Company


Barbara Haertling

BNSF Railway


Paul Hammes

Union Pacific


J.L. (Joey) Meibergen III

W.B. Johnston Grain Co.


Tom Meyer

Kansas Grain Inspection Service


Ryan Pellett

JD Heiskell 





Bob Petersen



Erica Venancio


Director of Communications

Abigail Hiles


Contact Info


TEGMA Office

P.O. Box 26426

Kansas City, MO 64196


Tel: (816) 569-4020

Fax: (816) 221-8189


Issue: Q4
November 30, 2012
2013 TEGMA ANNUAL MEETING: Registration Open!
The weather is just now getting cold and we are looking to get somewhere warm! Join us for the 2013 TEGMA Annual Meeting in Scottsdale, AZ!

This year TEGMA will hold its Annual Meeting at the spectacular Montelucia Resort and Spa. For reservations, CLICK HERE, or call 1 (877) 627-3010. 


Below is our preliminary program for the Annual Meeting:


Thursday, January 24, 2013

9:00 a.m. to 11:00 a.m.                  TEGMA Board meeting

1:00 p.m. to 5:00 p.m.                    General Session

5:30 p.m. to 6:30 p.m.                    Reception

6:30 p.m. to 8:30 p.m.                    Banquet


Friday, January 25, 2013

8:00 a.m. to 11:30 a.m.                   General Session 




TEGMA is excited to announce the following confirmed speakers for the 2013 Annual Meeting!


Kevin Fry, Vice President, River Consulting

"Latest Practices in Grain Elevator Design"


Don Jackson, CEO, JBS USA

"JBS: A World of Protein"


John Kraemer, Group Vice President, Ag Products, Norfolk Southern

"Norfolk Southern: One Line, Infinite Possibilities"


Mark Stoppel, Managing Director, Sales & Logistics, AEP River Operations 

"Navigating Changing Tides"





Before 12/28 - $495

After 12/28- $545



Rate- $150



Before 12/28 - $725

After 12/28- $775



KCS Rings in 125th Anniversary at NYSE


On November 27th, Kansas City Southern executives marked the Class I's 125th anniversary by ringing the opening bell at the New York Stock Exchange. 


as founded in 1887 by Arthur Stilwell, who envisioned a single-line railroad from the U.S. heartland to the Gulf of Mexico. Building off of his vision to develop a north-south railroad, KCS extended its network into Mexico in 1997 by joining with Transportación Ferroviaria Mexicana S.A. de C.V. (TFM) to operate the Northeast Railway, which was considered Mexico's premier rail line.


In 2005, KCS acquired full ownership of TFM and renamed it Kansas City Southern de México S.A. de C.V., resulting in the first 

and only coordinated rail network between the United States and Mexico, KCS officials said in a prepared statement.

Last year, KCS handled 2 million carloads and generated revenue of $2.1 billion - the first time carloads reached the 2 million threshold and annual revenue exceeded $2 billion, they said.

"The ringing of the opening bell of trading on the New York Stock Exchange is for us a celebration of the contributions of generations of dedicated KCS employees," said KCS Executive Chairman Mike Haverty.


Source: Progressive Railroading

Halifax Grain Silos Filling up after Elimination of Wheat Board Monopoly 

Halifax appears to be benefiting from the elimination of the Canadian Wheat Board's monopoly on selling Canadian grain.


Grain exports through Halifax grain elevators have gone up over the last year and a company spokesman believes some of the increase can be attributed to changes at the Wheat Board.


Grain silos in the city are filling up. Many are filled with soybeans from Maritime farms, but some are filling up with grain from Western Canada. The grain from the west will be stored in Halifax and then loaded onto ships.

In 2009, there were no grain exports in the city but things started up again in 2010 and this fall.


"Certainly some of that would have to do with changes in the wheat board, with people looking to see what they are going to do," says Jeff Brownlie of Halifax Grain Elevator Ltd.


After the federal government cancelled the Canadian Wheat Board's monopoly in August, western farmers have been free to sell their own crops. 


To read more, CLICK HERE.

Source: GrainNet.com/CTV

Judge Lets Lawsuit on Grain Settlements Proceed

A group of grain traders can proceed with a lawsuit to overturn new price-settlement rules at CME Group that they say are killing business in the historic open-outcry trading pits, a judge in Chicago ruled on Monday, Nov 26.


Cook County Circuit Court Judge Lee Preston denied a motion from CME, owner of the Chicago Board of Trade, to dismiss the lawsuit. Al Hogan, a lawyer for CME, declined to comment after the judge issued his ruling. A spokesperson for the exchange did not immediately respond to a request for comment.


"It's a big win," said Richard Goldwasser, a lawyer for the traders.

The traders, who work in the open-outcry pits on the Chicago Board of Trade's 140-year-old agricultural trading floor, sued CME in June to halt end-of-day settlement rules that factor in transactions executed electronically, where most of the volume takes place.


Prior to the change, CME had a century-old tradition of settling futuresprices for crops like corn and soybeans based on transactions executed in the pits.


The lawsuit represents the last stand for traders on the floor, who traditionally did much of their business at the close of trading and say the new procedures are making the pits irrelevant. Some believe CME wants to shut down the floor in favor of electronic trading because the pits are expensive to keep open.

To read more, CLICK HERE.
Source: Reuters
AAR to STB: Consider Natural Gas Competition for Coal Rate Cases

The Association of American Railroads (AAR) said November 19th it has petitioned the Surface Transportation Board (STB) to initiate a rulemaking that would propose re-introducing indirect competition- specifically product and geographic competition for fuel used to generate power- as a factor to be considered in determining if the STB has jurisdiction to hear rate cases involving the transportation of coal to coal-fired power plants.


AAR stressed that STB "has jurisdiction over rail rates only where a carrier is 'market dominant,' where it does not face effective competition. Where railroads face effective competition, current law allows the market to determine the level of rail rates."


AAR said "ample public information" now exists allowing STB to determine where indirect competition in wholesale power markets exists and whether it effectively puts downward pressure on coal rail transportation rates, particularly given the low price of natural gas in recent years.


To read more, CLICK HERE.

Source: Railway Age
SPONSORSHIP Opportunities!

TEGMA is pleased to announce sponsorship opportunities for its 2013 Annual Meeting in Scottsdale, AZ at the Montelucia Resort & Spa.  This is an excellent opportunity to gain visibility for your company while also supporting TEGMA.  Help us make this meeting a success while enhancing your company's corporate image!


Sponsorship includes:

  • Signage at the sponsored event
  • Recognition at the meeting and in all pre-meeting materials
  • Logo included in meeting program and website

Event                                                        Sponsorship Level 

Thursday Banquet                                        $2,000/each

Thursday Evening Reception                          $1,500/each

Thursday Afternoon Meeting Break                 $1,000/each

Friday Morning Meeting Break                        $1,000/each

Audio/Visual Sponsorship                              $1,000/each

Printing Sponsorship                                     $500/each


To sponsor, please contact Erica Venancio at erica.venancio@tegma.org or (816) 569-4020.