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Minnesota Rail Service Improvement Program

Minnesota Rail Service Improvement Program. Minnesota Port Development Assistance Program. Minnesota Rail Service Improvement Program. Purpose: Preserve and improve rail service and usage in Minnesota

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Minnesota Rail Service Improvement Program

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  1. Minnesota Rail Service Improvement Program Minnesota Port Development Assistance Program

  2. Minnesota Rail Service Improvement Program • Purpose: Preserve and improve rail service and usage in Minnesota • Rail Purchase Assistance—financially assist regional rail authorities in acquiring rail lines • Rail Rehabilitation—provide loans to rehabilitate and preserve rail lines (replace rail, ties, ballast, etc.) • Capital Improvement—provides loans to shippers (rail sidings, storage buildings, loading equip., etc.) • State Rail Bank—acquire and preserve abandoned rail lines for future transportation use • Rail User & Rail Carrier Loan Guarantee—assist shippers and railroads in obtaining loans.

  3. Minnesota Rail Service Improvement Program • Program History/Summary (1978-2006) • Projects completed = 261 -1242 miles rehabilitated -251 miles with purchase assistance -188 miles rail banked for future use -179 capital facility improvements • Funds invested (in Millions) State = $ 77.0 Federal = $ 23.8 Railroads = $ 15.1 Shippers = $ 9.0 • Total = $124.9

  4. Minnesota Rail Service Improvement Program • Most Recent Capital Funding Cycles • 2002 - $1.9M General Funds • 2003 - $3.2M transferred to GF to balance state budget • 2004 - $3.2M transferred to GF to balance state budget • 2005 - $1.5M MRSI and $1M earmark (bonds) • 2006 - $2M MRSI and $1.7M earmark (bonds)

  5. Minnesota Rail Service Improvement Program • Proposed Changes • Grants up to: -40% of project cost on private rail lines -60% of project cost on public rail lines • 20% local share required • Total grants up to 50% of annual MRSI expenditures

  6. Minnesota Rail Service Improvement Program Program Review -What has been the program experience? -What have been the impacts? -What are emerging industry trends and needs? -What are other states doing? -What changes should we move forward with?

  7. Minnesota Port Development Assistance Program • Purpose: Maintain and improve Minnesota’s River and Lake Superior public commercial ports • Provides grants to public port authorities for the improvement of infrastructure. River Ports—Minneapolis, St. Paul, Savage, Red Wing, Winona Great Lakes Ports—Duluth/Superior, Two Harbors, Silver Bay, Taconite Harbor

  8. Minnesota Port Development Assistance Program Program History/Summary (1996-2005) • Projects completed = 20 • Funds invested (in millions): State = $14.5 Other = $ 8.0 Total = $22.5 Example projects: -Roadway and rail access into the port -Terminal upgrades (warehouses/cranes) -Dock wall reconstruction -Limited dredging

  9. Minnesota Port Development Assistance Program Most Recent Capital Funding Cycles • 2003 - $2.0M state bond appropriation • 2005 - $2.0M state bond appropriation • 2006 - $3.0M state bond appropriation

  10. Office of Freight & Commercial Vehicle Operations Contacts William Gardner Freight, Rail and Waterways william.gardner@dot.state.mn.us 651-215-9669 Minnesota Rail Service Improvement Program Timothy Spencer timothy.spencer@dot.state.mn.us 651-215-6314 Minnesota Port Development Assistance Program Dick Lambert dick.lambert@dot.state.mn.us 651-215-6301

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