Intermodal Options for Greater Minnesota

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Intermodal Options for Greater Minnesota

• Jennifer Kocs
• Minnesota Department of Agriculture
• July 2006

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West-Central MN Intermodal Study

• In 2005, the Minnesota legislature assigned the
  states commissioner of agriculture, in
  consultation with the commissioner of
  transportation, the task of conducting an
  economic impact study of a rail container
  load-out facility located in the west-central
  area of Minnesota.

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West-Central MN Intermodal Study

• Why?
• Growth in containerization of grain
• Need for segregation of specific varieties or
  traits
• Difficulty obtaining containers suitable for
  shipping grain (20 food-grade)
• Repositioning charges passed on to shippers
  from railroads

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Source IANAs Intermodal Market Trends
Statistics Report
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West-Central MN Intermodal Study

• How did we do it?
• Reviewed previous research
• Surveyed shippers
• Interviewed railroad representatives
• Compared transportation costs from several areas
  to current intermodal terminals

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West-Central MN Intermodal Study

• What would it take to make it possible?
• Volume
• 100,000 lifts for establishing a new traditional
  intermodal hub
• around 20,000 lifts to maintain an existing hub
• 7,000 20,000 to establish and maintain a
  bimodal hub

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Information provided by BNSF, Telephone interview
Oct 2005
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West-Central MN Intermodal Study

• What else?
• Balance of traffic
• Density of destination
• Cooperation of operators
• Commitment of area businesses and the community

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Common Public Misconceptions

• If you build it, they will come
• We can apply political pressure to make the Class
  I railroad companies service a terminal
• There must be economic incentives for all parties
  involved, or it will not survive.

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West-Central MN Intermodal Study

• All respondents using intermodal are projecting
  future growth
• Freight challenges cited
• Fuel Costs
• Over-the-road carrier shortages
• Lack of rail service reliability
• Lack of 4-lane highway access connecting to
  Interstates

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West-Central MN Intermodal Study

• Drawbacks to locating a traditional intermodal
  hub in West-central MN
• Insufficient volume est. 50,000 lifts/year
• Primarily outbound
• Relatively close to existing terminals
• Low bridge in Minneapolis prevents doublestacking
  of containers on BNSF line that runs through
  Willmar

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West-Central MN Intermodal Study

• Recommendations
• Work with neighboring states to develop a
  coordinated intermodal plan, rather than compete
• Work with North Dakota to save Dilworth
• Advocate for a terminal to service the tri-state
  area (MN, IA, SD)

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West-Central MN Intermodal Study

• Remove existing barriers
• Build volume of intermodal use in the area
• Consider creative solutions to traffic balance
  issues
• Reconstruct the low bridge over the BNSF line in
  northeast Minneapolis

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West-Central MN Intermodal Study

• Explore the possibility of an intermodal terminal
  on a short line or regional railroad
• Grant application
• Private investment/initiative

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Assessing Feasibility of Intermodal Transport of
Agricultural and Related Products on Short Line
and Regional Railroads

• 85,600 awarded from USDA
• Specifically aimed at bimodal movement of trucks
  and containers on short line and regional
  railroads
• Study to be done by MDA with assistance from
  Mn/DOT

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Thank You
Jennifer Kocs Research Planner, MDA Ag Marketing
Services Tel [phone] jennifer.kocs_at_state.mn.
us www.mda.state.mn.us