1/13/2015
Senate Transportation Committee
January 14, 2015
Minnesota Department of Transportation
MN Rail System
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Four Class I railroads
One Class II railroad
Sixteen short line railroads
4500 track miles—8th
largest in U.S.
• 250 million tons/year
moved
• Rail in MN carries 38% of
tonnage vs. 16% in U.S.
• 25-40% growth by 2030
(7% growth, 2008-2013)
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1862 – first train in Minnesota
1887 – Interstate Commerce Act
1929 – peak of development: 9,400 miles
1971 – Amtrak, end of private passenger service
1980 – Staggers Act deregulation
1995 – Federal Surface Transportation Board created
2012 – Record high rail tonnage in Minnesota
Return to profitability
Rationalized system to seven Class 1 railroads
Track miles reduced to half of 1970s routes
Contracted high-utilization unit trains (coal, grain
shuttles, double-stack, crude oil)
Growth of Short Line RRs
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Interstate Commerce – federal regulation, pre-empts
local control
Railroad powers of eminent domain
Common carrier status, must accept shipper’s
tendered cargo without restriction
Local ‘police powers’ apply if they do not hinder
interstate commerce
State of MN manages grade crossing safety, partners
in federal programs, rail development
FRA (Federal Railroad Administration)
◦ rail safety, signals, standards, Amtrak and
passenger rail funding and administration
STB (Surface Transportation Board)
◦ rate and service dispute resolution (contract
shipments exempt from regulation); construction,
mergers, acquisitions, abandonments
PHMSA (Pipeline and Hazardous Materials
Safety Administration)
◦ tank car & hazmat standards and regulations
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Rail safety (hazmat, grade crossing, train control)
Rail capacity & reliability (shipper service)
Community impacts (blocked crossings, noise, vibration)
First commercial Bakken well: year 2000
Large-scale drilling: 2005; 1M barrels/day in 2014
Production (and oil trains) may double by 2023
First rail loading terminal: 2009
Next large scale rail terminals: 2011
Traffic today: 10 trains/day from Bakken, 6 trains/day
thru Twin Cities
40+ yr. life to oil field, only 1/4 developed to date
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Only enough pipeline capacity for 1/3-1/2 of
production over next ten years
Rail flexibility to multiple Gulf, West, and East
Coast refineries a major incentive to refiners
Bakken crude sweet, light, volatile
◦ Low flash point & boiling point
Tank car designs, track capacity, rail operations,
emergency response
State Actions
- CBR Grade Crossing Study
- Increased track and hazmat inspections
- Emergency responder training (railroads and DPS)
- Emergency preparedness plans (railroads, DPS,
PCA)
Federal Actions: operating rules/tank car
standards/inspections
Railroad Response: increased inspections, training,
rules, capacity expansion, signal improvements
Other Actions: oil stabilization, pipeline expansion
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700 miles of track, 683 crossings evaluated
Goal: reduce potential collisions that could
result in train derailment, tank car rupture, and
catastrophic fire
Identify impact zones and risk to travelers and
residents
Concentrate on interactions with populated
areas, heavy commercial vehicles
Inventory of all crossings and safety installations
Developed scoring based on population, facilities,
emergency response, truck traffic, conditions
Extensive mapping, new traffic counts on highest
ranked crossings
Conducted outreach; railroads, communities,
Governor’s Rail Safety Roundtables
Re-evaluated findings with safety, risk experts
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10 short-term projects ($2 million appropriation)
Medium term at-grade improvements ($5 million)
Long term at-grade improvements ($10 million)
Grade separations (reduce collisions, improve
emergency response and circulation)
- 15 projects total ($243 million estimated)
- 3 developed projects
- 3 in planning process
- 9 identified for study
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FRED Project Goal
“”The study will identify opportunities for
shippers, railroads and economic development
and transportation agencies to work together
more effectively, in support of expanded local
rail access, complementary business
development, and improved rail and
intermodal service options.”
Iron Ore and Minerals Extraction (90% of U.S.)
Agricultural Production – Leading producer of
Corn (#4), Soybeans (#3), Sugar Beets (#1)
Energy – Ethanol Production (#4), Coal, Oil, and
Gas Distribution
Manufacturing, Retail and High Technology
Products
Lumber and Building Products
Bulk and Containerized Exports
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CSX railroad “107 new economic development
projects” in 2014
‘Cargo-Oriented Development’ in Memphis, Columbus,
New Orleans, Kansas City, Chicago
Identified potential investment opportunity in FRED
Study, State Rail Plan Update; Big Lake, Albert Lea,
Lakeville, Winthrop, etc.
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Rail investments support communities,
job retention and creation
Improve Short Line RR service &
infrastructure
Collaborate with shippers and
communities
Coordinate economic development
programs
Integrate community plans and rail
service
Contacts
Minnesota Department of Transportation
Office of Freight & Commercial Vehicle Operations
Bill Gardner, Director
[email protected]
651-366-3665
Dave Christianson, Rail Planner
[email protected]
651-366-3710
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