I was sent this by Roger Libra and thought you guys might be interested.
I really hope this money gets to the MPL, the line needs it.



June 18th, 2007

The poor condition of the Minnesota Prairie Line is hindering economic development along the rail line.

That was the message sent to area legislators Monday morning at a meeting held at Heartland Corn Products of Winthrop. The meeting, lead by State Rep. Terry Morrow of St. Peter, was to learn more information about the Minnesota Prairie Line.

Morrow, along with State Rep. Lyle Koenen, who represents Renville County and part of Yellow Medicine County, are among the authors of a bonding bill that would provide $30 million to rehabilitate up to 95 miles of the Minnesota Prairie Line, from Norwood-Young America to Hanley Falls, to 25 mph travel. The Minnesota Valley Regional Rail Authority, consisting of Carver, Sibley, Renville, Redwood, and Yellow Medicine Counties, owns the Minnesota Prairie Line.

Mark Wegner, president of the Minnesota Prairie Line, explained that the line’s restoration started in April 2002 and was reopened for operations in October 2002. As a result of the line’s rehabilitation and restoration of dependable service, Heartland Corn Products expanded its ethanol production plant in Winthrop, which was completed in December 2006. The revitalization of the line has sparked additional economic development activity, including a proposed state-of-the-art waste to energy gasification plant in Redwood Falls.

Restoration of the rail line is planned in three phases. Phase one, to restore the line to 10 mph service, was completed in 2002.

The second phase is to replace the 1880’s light weight rail with heavier rail, which is now industry standard. Providing the heavier rail will enable 25 mile per hour operations. 10 of the 94 miles have been upgraded as of December 2006.

Wegner explained that it took about 1 1/2 years of operation in order to develop trust and dependability among shippers and the public.

Wegner said that the upgrade to 25 mph travel is more critical now because of a derailment that occurred north of Green Isle in December 2006. The derailment occurred on 80 pound rail. “The rail is inspected weekly, but we know the rail has internal defects.”

The goal is to replace the 80 lb. rail from Hamburg to Winthrop and beyond. “By getting the heavy rail, it will ensure a permanent place for this rail line,” Wegner said.

Redwood County Commission-er Gene Short, who also serves on the five county rail authority that owns the line, said that the waste to energy gasification plant in Redwood Falls would also have significant impact on the line. According to Short, the developer is looking at hauling 5,300 tons of municipal solid waste on this line in 50 car units, with 50 cars per day an average of 300 days per year. There is also discussion about a proposed tire recycling facility in Redwood Falls, he said.

Jeff Nielsen, general manager for United Farmers Co-op, said that UFC is looking at a “hub” plant for agronomy that would hold 30,000 tons of fertilizer. It is a project that the cooperative hopes will begin construction this year.

Jim Johnson, grain facility manager of United Farmers Co-op, said that UFC is also seriously considering development of a grain facility in Arlington. “The key is the railroad,” he said.

Gene Luetteke, manager of South Central Grain and Energy, said that the line rehabilitation has greatly improved the reliability. He said that his facility has not had a derailment in five years. “It builds a level of confidence in marketing grain,” he said.

He said that it is important to keep in the mind the “economic benefits to farmers” and that the short line railroad industry is important because it provides access to different market places.

“It’s pretty clear that if you give us a viable line we’ll get the traffic on it,” Ben Brown, general manager of Heartland Corn Products, said. Heartland Corn Products ships ethanol and dried distiller’s grains in unit trains. He said that for 96 car unit trains, the freight is $1,000/car less than with smaller units.

Dean Pederson, Winthrop’s economic development director, said that the community is working on its comprehensive plan. As part of the comprehensive plan, Winthrop is looking at bringing utilities to the west because of potential development from the rail line.

Sibley County Commissioner Charlie Woehler said that not only is the shipping potential great from current businesses, but also for future businesses because several communities have their industrial parks along the line.

Koenen explained that the bill will be heard by the Capital Investment Committee in late summer and also by the Transportation Committee.

State Sen. Kathy Sheran said that she believes the legislators could make a case by showing where bonding money has been spent in the past.

Koenen added that because there was no bonding bill this session, the next bonding bill will be larger. He also noted that it is not unusual to have requests this large.

In 2006, the Minnesota Valley Regional Rail Authority received $1 million in the state bonding bill. The only other state participating has been a 0% interest loan for the initial rehabilitation. in 2002.

To date, the Regional Rail Authority has been awarded $5.482 million in federal grants, with $2 million of work presently being done to replace ties, rail and ballast from Redwood Falls to Hanley Falls. $1.495 million that will be used to upgrade the line from Winthrop to Norwood is close to being finalized, according to Short.

Luetteke added that the majority of the businesses that are shipping have local ownership. “The money stays here,” he said. “Not all ethanol plants and grain facilities are locally owned.”[url][/url]

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