Transportation Finance Advisory GroupMay 18, 2012

Freight Rail and Ports/Waterways

Office of Freight & Commercial Vehicle OperationsMinnesota Department of Transportation

Statewide Freight Policy

“Provide an integrated system of freight transportation in Minnesota—highway, rail, water, air cargo and intermodal terminals—that offers safe, reliable, and competitive access to statewide, national and international markets.”

Minnesota Statewide Freight Plan (2005)

Truck49%

Carload Rail35%

Container Rail3%

Water6% Air

<1% Other7%

By Tonnage

Truck80%

Carload Rail12%

Container Rail6%

Water0%

Air<1% Other

1%

By Value

Minnesota FreightSource: TRANSEARCH, 2007

Freight System Assets

MODE SYSTEM OWNERSHIP TERMINALS FLEET

Trucking Public Roads Private Terminals Private Truck Fleets

Rail Private Track & Structures

Private Terminals Private Rolling Stock

Waterways Public Waterways Public Ports and Private Terminals

Private Barge & Shipping Fleets

Air Cargo Public Airports Private Cargo Terminals

Private Aircraft

MnDOT Freight Office Focus Areas

Improve safety of the freight system for users and travelers• Reduce heavy truck-related crashes & fatalities• Reduce highway/rail grade crossings crashes & fatalities

Preserve/improve freight capacity• Improve rail line track/structures• Improve port facilities

Provide competitive freight access• Improve travel time/reduce delays • Improve intermodal connections

Office of Freight & Commercial Vehicle OperationsPrograms and Activities

• Highway/Rail Crossing Safety Improvement Projects • Support Trunk Hwy. Construction Projects Involving Rail• Minnesota Rail Service Improvement Program• Minnesota State Rail Bank Program• Rail Track Safety Inspection Program• Minnesota Port Development Assistance Program• Freight Planning--Statewide Freight Plan, State Rail Plan,

Regional Freight Studies, MN Freight Advisory Comm.

Office of Freight & Commercial Vehicle OperationsPrograms and Activities continued…

• Motor Carrier Safety Performance Audits • Motor Carrier Credentials • Motor Carrier Safety Education• Highway HazMat Incident Response• HazMat Site/Vehicle Inspections • Oversize/Overweight Truck Permits

Type Source FY 2012 FY 2013

Direct appropriations General Fund $0.3 $0.3

Trunk Highway Fund $4.9 $4.9

Subtotal, Direct $5.2 $5.2

Federal funds $15.9 $13.4

Bond funds General Obligation (GO) Bonds $3.0 $0

Statutory appropriations Special Revenue Fund $2.5 $2.5

Total Funding $26.5 $21.0

OFCVO Funding, FYs 2012-13All dollars in millions

Notes:• Direct appropriations from Minnesota Session Laws of 2011, 1st Special Session, Chapter 3• Federal funds from FY 2012-13 operating budget agency narrative for Transportation, + additional authority granted through

Legislative Advisory Commission (LAC) request• Statutory and open appropriations from FY 2012-13 operating budget agency narrative for Transportation• Bond amounts from Chapter 293 (House File 1752)

Minnesota’s Freight Rail System• Rail network — 4,631 track miles• 4 Class 1 Railroads (BNSF, CP, UP, CN)• 18 Short Line Railroads• 2 major intermodal container yards • 4500 public roadway crossings• 2500 private crossings

9

Rail Tonnage and Rank: Selected States

IL KS IA MN SD WI ND0

50

100

150

200

250

300

350

400

450#3

#5#7

#13

#21 #23 #27

Million Tonss

Source: 2009 Surface TransportationBoard Waybill Sample

Minnesota Rail Tonnage

Source: American Association of Railroads2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

0

50

100

150

200

250

Mil-lion

Minnesota Rail Service Improvement Program

• Purpose: preserve and enhance rail service & increase rail shipping

• Established 30+ years ago• 10-yr., no-interest loans to shippers, railroads

& county rail authorities• Focused primarily on Short Line RRs• Total investment = $34.6M; $100M leveraged• 260 projects completed

MRSI Program AppropriationsYEAR AMOUNT

2001 $5 M2002 $1 M

2003 $0

2004 $0 2005 $0

2006 $1.5 M

2007 $2 M

2008 $0

2009 $0

2010 $2 M

2011 $0

2012 $0

Rail Assistance Programs of Selected States

STATE AVG ANNUAL $ GRANTS LOANSMinnesota $1-2 M No YesIllinois $10 M Yes YesIowa $2-5 M Yes YesKansas $3-5 M Yes YesNorth Dakota $1 M No YesWisconsin $15 M Yes Yes

Mississippi River System• Port of St. Paul (#75 U.S. ports)• Ports of Minneapolis, Savage, Red Wing,

Winona• 7 locks/dams in MN

Great Lakes/St. Lawrence Seaway• Port of Duluth-Superior (# 1 lake port, #18

US ports) • Ports of Two Harbors (#42), Silver Bay

(#66), Taconite Harbor

Minnesota Commercial Navigation SystemRanked 20th in Statewide Tonnage

Port Tonnage (Millions)

Source: MN Port Terminalsas reported to MnDOT

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

RIVER PORTSLAKE PORTS

Note: Includes Superior. WI

MN Port Development Assistance Program

• Provides grants to public ports for infrastructure improvement• Maximum state match of 80% and local minimum of 20%• $24 million appropriated from 1996 to 2012• 37 projects such as:

• Dredging in the dock areas• Dock wall reconstruction• Building rehabilitation• Improving road and rail access

MN Port Development AppropriationsYEAR AMOUNT

2001 $1 M2002 $0

2003 $2 M

2004 $0

2005 $2

2006 $3 M

2007 $0

2008 $0.5 M

2009 $3 M

2010 $0

2011 $3 M

2012 $1 M

Port Assistance Programs of Selected States

STATE AVG ANNUAL $ GRANTS LOANSMinnesota $1.5 M YesIndiana $0

Iowa $0

Missouri $0

Ohio $0

Wisconsin $3.0 M Yes

Transportation Finance Advisory GroupMay 18, 2012

Freight Rail and Ports/Waterways

Bill Gardner, DirectorOffice of Freight & Commercial Vehicle Operations

Minnesota Department of Transportation