2. 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)

3. By TonnageBy Value Minnesota Freight Source: TRANSEARCH, 2007

4. Freight System Assets MODESYSTEM OWNERSHIPTERMINALSFLEET TruckingPublic RoadsPrivate TerminalsPrivate Truck Fleets RailPrivate Track & Structures Private TerminalsPrivate Rolling Stock WaterwaysPublic WaterwaysPublic Ports and Private Terminals Private Barge & Shipping Fleets Air CargoPublic AirportsPrivate Cargo Terminals Private Aircraft

5. MnDOT Freight Office Focus Areas Improve safety of the freight system for users and travelers Reduce heavy truck-related crashes & fatalities Reduce heavy truck-related crashes & fatalities Reduce highway/rail grade crossings crashes & fatalities Reduce highway/rail grade crossings crashes & fatalities Preserve/improve freight capacity Improve rail line track/structures Improve rail line track/structures Improve port facilities Improve port facilities Provide competitive freight access Improve travel time/reduce delays Improve travel time/reduce delays Improve intermodal connections Improve intermodal connections

6. Office of Freight & Commercial Vehicle Operations Programs and Activities Highway/Rail Crossing Safety Improvement Projects Highway/Rail Crossing Safety Improvement Projects Support Trunk Hwy. Construction Projects Involving Rail Support Trunk Hwy. Construction Projects Involving Rail Minnesota Rail Service Improvement Program Minnesota Rail Service Improvement Program Minnesota State Rail Bank Program Minnesota State Rail Bank Program Rail Track Safety Inspection Program Rail Track Safety Inspection Program Minnesota Port Development Assistance Program Minnesota Port Development Assistance Program Freight Planning--Statewide Freight Plan, State Rail Plan, Regional Freight Studies, MN Freight Advisory Comm. Freight Planning--Statewide Freight Plan, State Rail Plan, Regional Freight Studies, MN Freight Advisory Comm.

7. Office of Freight & Commercial Vehicle Operations Programs and Activities continued… Motor Carrier Safety Performance Audits Motor Carrier Safety Performance Audits Motor Carrier Credentials Motor Carrier Credentials Motor Carrier Safety Education Motor Carrier Safety Education Highway HazMat Incident Response Highway HazMat Incident Response HazMat Site/Vehicle Inspections HazMat Site/Vehicle Inspections Oversize/Overweight Truck Permits Oversize/Overweight Truck Permits

8. TypeSourceFY 2012FY 2013 Direct appropriationsGeneral Fund$0.3 Trunk Highway Fund$4.9 Subtotal, Direct$5.2 Federal funds$15.9$13.4 Bond funds General Obligation (GO) Bonds $3.0$0 Statutory appropriations Special Revenue Fund$2.5 Total Funding$26.5$21.0 OFCVO Funding, FYs 2012-13 All dollars in millions Notes: Direct appropriations from Minnesota Session Laws of 2011, 1 st 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)

9. Minnesota’s Freight Rail System Rail network — 4,631 track miles Rail network — 4,631 track miles 4 Class 1 Railroads (BNSF, CP, UP, CN) 4 Class 1 Railroads (BNSF, CP, UP, CN) 18 Short Line Railroads 18 Short Line Railroads 2 major intermodal container yards 2 major intermodal container yards 4500 public roadway crossings 4500 public roadway crossings 2500 private crossings 2500 private crossings 9

10. Rail Tonnage and Rank: Selected States Rail Tonnage and Rank: Selected States Source: 2009 STB Waybill Sample Source: 2009 Surface Transportation Board Waybill Sample

11. Minnesota Rail Tonnage Source: American Association of Railroads

12. Minnesota Rail Service Improvement Program Minnesota Rail Service Improvement Program Purpose: preserve and enhance rail service & increase rail shipping Purpose: preserve and enhance rail service & increase rail shipping Established 30+ years ago Established 30+ years ago 10-yr., no-interest loans to shippers, railroads & county rail authorities 10-yr., no-interest loans to shippers, railroads & county rail authorities Focused primarily on Short Line RRs Focused primarily on Short Line RRs Total investment = $34.6M; $100M leveraged Total investment = $34.6M; $100M leveraged 260 projects completed 260 projects completed

13. MRSI Program Appropriations YEARAMOUNT 2001$5 M 2002$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

14. Rail Assistance Programs of Selected States STATEAVG ANNUAL $GRANTSLOANS Minnesota$1-2 M NoYes Illinois$10 M Yes Iowa$2-5 M Yes Kansas$3-5 M Yes North Dakota$1 M NoYes Wisconsin$15 M Yes

15. Mississippi River System Port of St. Paul 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 Port of Duluth-Superior (# 1 lake port, #18 US ports) Ports of Two Harbors (#42), Silver Bay (#66), Taconite Harbor Minnesota Commercial Navigation System Ranked 20 th in Statewide Tonnage

16. Port Tonnage (Millions) Source: MN Port Terminals as reported to MnDOT Note: Includes Superior. WI

17. 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

18. MN Port Development Appropriations YEARAMOUNT 2001$1 M 2002$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

19. Port Assistance Programs of Selected States STATEAVG ANNUAL $GRANTSLOANS Minnesota$1.5 M Yes Indiana$0 Iowa$0 Missouri$0 Ohio$0 Wisconsin$3.0 M Yes