The Land of 10,000 Lakes is investing in several rail improvement projects to support the state’s economic development.
In a May 7 news release, the Minnesota Department of Transportation (MnDOT) announced that it awarded a total of $9.6 million in funding to optimize freight rail service throughout the state. The sum of grant money will be divided in varying amounts to eleven unique rail projects.
The grants are provided through the Minnesota Rail Service Improvement program following approval from state legislators.
MnDOT Freight and Rail Programs Supervisor Kelly Christenson lauded the upside of this initiative: “Improving Minnesota’s rail service gives local businesses more opportunities to compete in our global and national economy.”
Christenson further added that MnDOT received an increased number of grant applications this year, indicating needed support for freight rail improvements across Minnesota.
A look behind the eleven projects
The following is a list of the eleven projects and respective funding amounts:
Progressive Rail (Lakeville)
Progressive Rail Inc. is a short line railroad which operates in the Minneapolis-St. Paul metropolitan area. Of the $9.6 million, the railway will receive $468,137 to renew and improve eight bridge structures located on its 97-mile network.
Progressive Rail is based in Lakeville, a southern suburb of Minneapolis.
Northern Country Co-op (Lansing)
A grain elevator facility will receive $1.9 million to develop a unit train loading facility as well as to install additional storage capacity to hold product prior to loading.
Northern Country Co-op is located in Lansing, an unincorporated community northwest of Albert Lea in southern Minnesota.
Meadowlands Farmers Co-op (Echo)
An agricultural facility will receive $1.1 million to build 2,150 feet of new siding track to transport fertilizer by rail for a new agronomy center to be constructed adjacent to the siding.
Meadowlands is located in Echo, a town in western Minnesota.
Seven Rivers Intermodal Terminal (Winona)
The intermodal hub will receive $511,446 to add 2,440 feet of track and two internal switches within their existing facility to increase yard and cargo handling capacity.
The terminal is located in Winona, a city adjacent to the Mississippi River in southeast Minnesota.
American Crystal Sugar Company (Crookston)
The sugar manufacturer will receive $960,000 to expand a packaging warehouse to cover the rail spur next to the building, providing better accessibility to load railcars.
The warehouse is in Crookston, a city in northwest Minnesota near the North Dakota border.
Louisiana-Pacific Corporation (Watkins)
Building materials manufacturer Louisiana-Pacific will be entrusted with $1.5 million to install new railcar offloading stations equipped with outdoor bulk storage and material handling upgrades.
The stations will be constructed in Watkins, a rural community northwest of the Twin Cities metro.
DeRock Capital Group (Hector)
DeRock Capital, a stakeholder with a short line railway, will receive $246,000 to add a switch to the sidetrack and 350 feet of rail. The organization will also use the funding to update two existing loading rail docks.
City of Little Falls (Little Falls)
The city of Little Falls, located in central Minnesota, will receive $613,600 to reconstruct and update an existing signal to an active warning railroad crossing. The city will also use the funding to install up-to-code pedestrian crosswalks, while closing a current crossing to enhance the community’s safety.
Sanimax USA (South St. Paul)
Agricultural food processor Sanimax will get $400,000 to enhance its rail loading system and allow direct placement of product into railcars. The business will also install a conveyor system linking the transfers between truck and rail.
The project will take place in Sanimax’s facilities in South St. Paul, a suburb south of St. Paul.
Minnesota Northern Railroad (Crookston)
The Class III short line will receive $1.56 million towards land development for a new industrial park, including 2,478 feet of track and preparation for a new spur.
The railway operates 224 miles of track in northwest Minnesota.
Twin Cities and Western Railroad (Cologne)
The railroad will receive $328,424 to extend a stub track over a recently acquired parcel and create a full siding with connections to its mainline, creating greater accessibility and track capacity for transload operations.
Twin Cities and Western Railroad operates 229 miles of track, which runs from the South Dakota border to Minneapolis-St. Paul.
Final Thoughts
Aside from rail improvements, Minnesota has also seen a boost in the other half of surface transportation—road.
Last month, MnDOT District 8, which encompasses the greater part of Minnesota’s southwest region, was awarded $1,090,000 from the federal Highway Safety Improvement Program for three safety improvement projects within the district.
Contact one of our team members if you have any questions regarding this topic or any others in cross-border logistics.
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