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Intermodal Options for Greater Minnesota

Intermodal Options for Greater Minnesota. Jennifer Kocs Minnesota Department of Agriculture July 2006. West-Central MN Intermodal Study.

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Intermodal Options for Greater Minnesota

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  1. Intermodal Options for Greater Minnesota Jennifer Kocs Minnesota Department of Agriculture July 2006

  2. West-Central MN Intermodal Study • In 2005, the Minnesota legislature assigned the state’s 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.”

  3. 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

  4. Source: IANA’s Intermodal Market Trends & Statistics Report

  5. 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

  6. 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

  7. Information provided by BNSF, Telephone interview Oct 2005

  8. West-Central MN Intermodal Study What else? • Balance of traffic • Density of destination • Cooperation of operators • Commitment of area businesses and the community

  9. 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.

  10. 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

  11. 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

  12. 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)

  13. 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

  14. West-Central MN Intermodal Study • Explore the possibility of an intermodal terminal on a short line or regional railroad • Grant application • Private investment/initiative

  15. “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

  16. Thank You Jennifer Kocs Research Planner, MDA Ag Marketing Services Tel: 651-201-6220 jennifer.kocs@state.mn.us www.mda.state.mn.us

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