Freight

Issue

How can we better serve Minnesota businesses by improving freight movement?

Policy

An efficient freight system is an essential ingredient for economic development and for enhancing Minnesota's economic competitiveness in the national and international marketplaces. More than 50,000 Minnesota companies in the manufacturing, retail, wholesale and agricultural sectors rely on the state's multimodal network of road, rail, water and air to move their goods to market. In 2001, more than 636 million tons of freight valued at $562 billion moved in and through Minnesota. That number is projected to grow to 1.019 billion tons (60-percent increase) and $1.171 trillion value (108-percent increase) by 2020.

To ensure the state's transportation system can meet the anticipated growth in freight movement at competitive rates, the Minnesota Chamber recommends the following:

• Maximize freight movement on the existing system by eliminating or updating regulations that restrict flow. Examples include establishing a one-stop shop for issuing state and county permits for loads that are over dimension, removing some nighttime and off-peak restrictions on those loads, and ensuring that passenger rail does not inhibit the ability of railroads to serve current and future customers.

• Minnesota’s road and rail systems must conform with the federal network and any changes made that improve freight productivity.

• Create economic incentives to invest in Minnesota’s freight network. Examples include replenishing the monies from the Minnesota Rail Service Improvement account taken for budget reconciliation and recognizing the federal shortline railroad investment credit.
  
  
• Improve delivery of infrastructure improvements that will enhance freight movement. Examples include maximizing innovative ways to efficiently improve the capacity of freight corridors and local roads to meet the needs of industry, and streamlining the process of installing grade-crossing signals so speeds can be safely increased.


• Support policies that prevent costly operational changes for the state’s freight providers. Examples include fuel formulation and equipment mandates. The Minnesota Chamber of Commerce shall only support the state’s adoption of new funding mechanisms implemented as part of a comprehensive, federal approach or thoroughly reviewed by the appropriate committees and the Board of Directors of the Minnesota Chamber.

Business Impact

Businesses rely on the transportation system to move freight efficiently. Businesses rely on freight traffic to both supply materials and transport finished products. Shipment timing is crucial in today’s electronically driven freight stream. All businesses benefit when freight moves smoothly.