Freight rail in Greater Minnesota House Transportation Committee.

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Presentation transcript:

Freight rail in Greater Minnesota House Transportation Committee

Rail use in the U.S.  Rail use by industries is concentrated in the Midwest.  These are states without ports, but are also home to industries suited for rail use. Map: “Understanding and Enhancing the Value of Freight Economy in Minnesota,” State and Local Policy Program, University of Minnesota Humphrey Institute.

What Minnesota ships by rail TonsNational rank Metallic ores51.9 million1 st Farm products13.9 million3 rd Food products7.5 million3 rd Stone, sand & gravel 6.7 million6 th Data: In 2012, Minnesota shipped… Top 5 products originating in Minnesota.

Access to the world  Railroads of North America  Common carriers: Interconnection with other rail lines  Connection to East, West and Gulf Coast ports, Canada and Mexico

Short lines fill in the gaps Maps: MnDOT.

Recommendations from State of Rail report Proper planning to coordinate the interconnection of freight rail, highways, pipelines, and river traffic can improve the efficiency of freight transportation, ideally lowering costs on the back end for shippers. Ensure that freight rail is included in any coordinated transportation and economic development planning. These small companies provide valuable services and transportation to shippers that are located farther from Class I lines. However, they lack the capital to make major improvements. Don’t forget about short line railroads. To be relevant, MRSI needs to be reviewed and updated. Critics say the loan caps are too low and the paperwork, administration, and regulations surrounding the program too onerous to make the loans worth it. Minnesota Rail Service Improvement program.