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MNNR Awarded $15.8MM Grant for Locomotive Project

Minnesota Commercial Railway’s (MNRR) 86-mile network stretches from the City of Hugo on the far north to South Minneapolis on the south. It serves more than 80 customers. (Map Courtesy of MNNR)
Minnesota Commercial Railway’s (MNRR) 86-mile network stretches from the City of Hugo on the far north to South Minneapolis on the south. It serves more than 80 customers. (Map Courtesy of MNNR)

Minnesota Commercial Railway (MNNR) will use a $15.8 million Federal Railroad Administration (FRA) grant to purchase up to six “custom-built” low-emission diesel locomotives for use on its 86-mile network that stretches from the City of Hugo on the far north to South Minneapolis on the south (see map above).

The order will be for refurbished locomotives powered by Cummins QST30 engines and designated as Tier 4 by the EPA, MNNR Co-President and Chief Operating Officer Wayne Hall told Railway Age.

While a manufacturer has not yet been selected, delivery of the first unit is expected in fall 2025, with final delivery to be completed and all units in operation by early 2026, according to MNNR, which this fall received an FRA Consolidated Rail Infrastructure and Safety Improvements Program grant for the project.

The locomotives will replace nine of MNNR’s 1970’s-era GE units, which will be retired and destroyed.

The total cost of the project is $20 million. After the CRISI grant is applied, the remaining $4.2 million will be funded by the railroad, which is based in St. Paul, Minn., and serves more than 80 customers.

MNNR is undertaking the project for two reasons, according to Hall. “First, we wanted to significantly reduce our carbon footprint in the communities in which we operate and do everything we can to achieve cleaner air for the metro area,” he said. “Second, we wanted to make certain that we are able, well into the future, to continue to serve our customers and their employees in the safest, most efficient and most climate-friendly way possible. When completed, emissions from our fleet will be reduced by 90% and our fuel consumption will be lowered by 40%, with the additional benefit to residents and homeowners of some moderation of engine-generated noise levels.”

Hall said MNNR was “extremely grateful for the spearheading of its application to the FRA by Minnesota’s Congressional leadership group, headed by Sen. Amy Klobuchar, Rep. Ilhan Omar, and Rep. Betty McCollum, and by the chairpersons of both the Minnesota House and Senate Transportation Committees, Rep. Frank Hornstein and Sen. Scott Dibble, who were joined by other Minnesota legislators.” Their support, he noted, was “magnified by the public endorsement and strong individual letters of support from nearly 50 cities, counties, chambers of commerce, economic development organizations, regulators, shippers and other customers, and especially significant, key state environmental and conservation advocacy groups including Conservation Minnesota, Clean Air Minnesota, and the Izaak Walton League—Minnesota Valley Chapter.” Hall added that the railroad “would like to extend a special thank you to the Minnesota Pollution Control Agency and the Minnesota Department of Transportation for their continued support of this project.”