The Twin Cities & Western Railroad grant will channel $22 million in federal funding toward new grain cars and track upgrades intended to strengthen a key agricultural corridor in Minnesota.
According to the Federal Railroad Administration, Twin Cities & Western Railroad Company received the award in October through the Consolidated Rail Infrastructure and Safety Improvements Program. The short line operates more than 360 miles of track in Minnesota and South Dakota.
Twin Cities & Western Railroad grant to fund new cars and upgrades
Project plans call for the purchase of 200 covered hopper rail cars and infrastructure improvements that will enable 286,000-pound railcar loading. Officials say the work is designed to improve reliability, cut delays, and increase overall capacity for grain movement.
TC&W President Victor Meyers said the investment tackles an aging fleet problem. He noted the railroad’s current covered hoppers date to the early 1980s with 4,750-cubic-foot cars restricted to 263,000 and 268,000 pounds. The new equipment, he said, will be 5,200-cubic-foot cars capable of 286,000-pound loading. Meyers added the existing hopper fleet is nearing the end of interchange service within five years, and renewing the fleet will help shield customers from equipment shortages and provide more dependable shipping.
The FRA said Twin Cities & Western will provide a 20 percent non-federal match for the project.
Arkansas-based Greenbrier Companies will build the new grain cars. Meyers said domestic production supports long-term availability of railcars used to move grain, fertilizer, and other agricultural commodities. In a statement, Brian Comstock, Greenbrier’s president for The Americas, said the company looks forward to producing a modern, Made in America fleet at its Paragould, Arkansas, facility, adding the cars will benefit Minnesota agriculture for decades.
Meyers said production and construction of the fleet could begin in late 2027 and conclude in 2029.
The award drew letters of support from U.S. Sens. Amy Klobuchar, Tina Smith, John Boozman, and Tom Cotton, and U.S. Reps. Tom Emmer, Pete Stauber, Michelle Fischbach, Brad Finstad, and Rick Crawford.
The funding is part of a wider U.S. Department of Transportation package in which the Federal Railroad Administration is investing $2.3 billion in 105 freight and passenger rail projects across 45 states and the District of Columbia through the CRISI program. According to the department, more than 2,000 miles of track will be affected, and selected projects will also receive over $1.9 billion in non-federal contributions from state, local, and private partners.
According to Harvest progress weighs on grains amid mixed demand, rail capacity plays a critical role in how efficiently grain moves from farms to domestic processors and export channels.