Minnesota Statewide Freight Plan

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Minnesota Rail Service Improvement Program
Minnesota Port Development Assistance Program
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Minnesota Rail Service Improvement Program

• Purpose Preserve and improve rail service and
  usage in Minnesota
• Rail Purchase Assistancefinancially assist
  regional rail authorities in acquiring rail lines
• Rail Rehabilitationprovide loans to
  rehabilitate and preserve rail lines (replace
  rail, ties, ballast, etc.)
• Capital Improvementprovides loans to shippers
  (rail sidings, storage buildings, loading equip.,
  etc.)
• State Rail Bankacquire and preserve abandoned
  rail lines for future transportation use
• Rail User Rail Carrier Loan Guaranteeassist
  shippers and railroads in obtaining loans.

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Minnesota Rail Service Improvement Program

• Program History/Summary (1978-2006)
• Projects completed 261
• -1242 miles rehabilitated
• -251 miles with purchase assistance
• -188 miles rail banked for future use
• -179 capital facility improvements
• Funds invested (in Millions) State
  77.0
• Federal 23.8
• Railroads 15.1
• Shippers 9.0
• Total 124.9

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Minnesota Rail Service Improvement Program

• Most Recent Capital Funding Cycles
• 2002 - 1.9M General Funds
• 2003 - 3.2M transferred to GF to balance state
  budget
• 2004 - 3.2M transferred to GF to balance state
  budget
• 2005 - 1.5M MRSI and 1M earmark (bonds)
• 2006 - 2M MRSI and 1.7M earmark (bonds)

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Minnesota Rail Service Improvement Program

• Proposed Changes
• Grants up to
• -40 of project cost on private rail lines
• -60 of project cost on public rail lines
• 20 local share required
• Total grants up to 50 of annual MRSI
  expenditures

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Minnesota Rail Service Improvement Program
Program Review -What has been the program
experience? -What have been the impacts? -What
are emerging industry trends and needs? -What are
other states doing? -What changes should we move
forward with?
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Minnesota Port Development Assistance Program

• Purpose Maintain and improve Minnesotas River
  and Lake Superior public commercial ports
• Provides grants to public port authorities for
  the improvement of infrastructure.
• River PortsMinneapolis, St. Paul, Savage, Red
  Wing, Winona
• Great Lakes PortsDuluth/Superior, Two Harbors,
  Silver Bay, Taconite Harbor

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Minnesota Port Development Assistance Program
Program History/Summary (1996-2005)

• Projects completed 20
• Funds invested (in millions)
• State 14.5
• Other 8.0
• Total 22.5
• Example projects
• -Roadway and rail access into the port
• -Terminal upgrades (warehouses/cranes)
• -Dock wall reconstruction
• -Limited dredging

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Minnesota Port Development Assistance Program
Most Recent Capital Funding Cycles

• 2003 - 2.0M state bond appropriation
• 2005 - 2.0M state bond appropriation
• 2006 - 3.0M state bond appropriation

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Office of Freight Commercial Vehicle
Operations Contacts William Gardner Freight, Rail
and Waterways william.gardner_at_dot.state.mn.us 651-
215-9669
Minnesota Rail Service Improvement Program
Timothy Spencer timothy.spencer_at_dot.state.mn.us 65
1-215-6314
Minnesota Port Development Assistance
Program Dick Lambert dick.lambert_at_dot.state.mn.us
651-215-6301