Railroads Benefit Minnesota’s Economy

In Minnesota, freight rail investments from the 17 freight railroads operating in the state have been critical to retaining and attracting manufacturing jobs, providing access to domestic and international markets, and providing jobs for about 6,000 workers living in Minnesota.

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Shippers in Minnesota originate over 1.15 million carloads of traffic every year and customers in Minnesota are the recipients of over 965,000 carloads of goods ranging from food to building materials to energy products critical for generating electricity.

Minnesota railroads rank first in the nation in the movement of iron ore and third and fourth, respectively, in the origination of farm and food products.

Minnesota’s Class I railroads will continue to invest in rail safety and upgrades and have committed more than $500 million in capital improvements in Minnesota in 2015.

Railroads help their customers control their prices, saving them billions of dollars each year, which enhances competitiveness and improves our standard of living.

If rail costs increase because of state taxes it means the cost of almost everything we use – food, electricity, clothes, automobiles, gasoline – will increase, meaning less money for Minnesotans to spend on other items.

Since 1980, rail safety has improved significantly with the number of train accidents dropping by 79% and grade crossing collisions dropping 81%.

By taxing railroads, Governor Dayton would limit the ability of railroads to invest back into the system by taking that money for government uses. Currently freight railroads spend nearly 18 percent of their revenues on capital expenditures, more than six times higher than the average U.S. manufacturer.

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RAILROADS IMPLEMENT
NEW CRUDE OIL
SAFETY MEASURES

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In 2013, 99.99% of crude oil rail shipments were delivered without incident.

Grade crossing accidents almost never result in a train derailment. Only about 0.8% of car-rail collisions result in the derailing of rail equipment. In Minnesota, only four car-rail collisions in Minnesota in the last ten years resulted in a derailment.

Railroads support tougher restrictions on the tanker cars that carry crude oil. Approximately 228,000 tank cars are so-called “DOT-111” general service tank cars. Around 100,000 DOT-111 cars are used to transport crude oil or other flammable liquids. To the extent that DOT-111 cars are used to transport crude oil, the rail industry believes they should be retrofitted or replaced.

Under federal regulations, the entity “offering” crude oil to the railroad for transport (e.g., the oil producer) is responsible for properly classifying the oil based on its level of hazard. On February 25, 2014, the Federal Railroad Administration issued an executive order requiring that crude oil from the Bakken region be tested to ensure that it is properly classified before it is transported by rail. Railroads support the pursuit of proper classification and labeling of petroleum crude oil in tank cars by shippers prior to transport.

Minnesota’s new
safety measures

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Increased Track Inspections

At least one additional rail inspection is required each year in addition to Federal Railroad Administration (FRA) requirements

Increased Trackside Safety Technology

Railroads now require additional hot bearing detectors on crude oil routes above FRA requirements

Use of Rail Risk-Based Traffic Routing Technology

Use of Rail Corridor Risk Management System (RCRMS) to determine the most safe and secure routes for crude oil trains

Required Lower Speeds

Implemented nationwide speed restrictions for trains carrying crude oil and other hazardous materials and products

New Training Requirements

Developed specialized Crude by Rail (CBR) first responder training and tuition reimbursement to train 1,500 first responders in 2014

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