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 has the capacity to 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 overhauling the state’s cumbersome escort requirements for over dimension loads, 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.
• 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 focusing on bottleneck removals on major freight corridors and streamlining the process of installing grade-crossing signals so speeds can be safely increased.
• Oppose policies that mandate costly operational changes for the state’s freight providers. Examples include fuel formulation and equipment mandates; and walkway, lighting and maintenance directives to railroads.

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.