Minnesota Commercial Railroad: A Classic Regional Line

Published: August 21, 2024

Railroads have been the backbone of American commerce and industry for more than a century, adapting and evolving to meet the demands of a growing economy.

Among these resilient enterprises, the Minnesota Commercial Railroad (MNNR) stands out as a quintessential example of a regional railroad that has effectively leveraged its niche to carve a unique path in the industry.

The system is well known among enthusiasts for operating a fleet of venerable Alco and MLW products, as well as early GE road-switchers. The company - whose heritage can be traced back to the Minnesota Transfer Railway, the Twin Cities' historic terminal road - has remained independent since its 1987 founding.

This article explores the history, operations, infrastructure, and impact of the Minnesota Commercial Railroad, illuminating the vital role it plays in the Twin Cities region.

Minnesota Commercial M630 #73 (ex-CP) and SF30C #50 (ex-Santa Fe) are headed west with a transfer run at Hoffman Avenue in St. Paul on January 29, 2000. Doug Kroll photo.

Heritage

The Minnesota Commercial Railroad is a relatively young player in the rich tapestry of American rail history, established in 1987. Arising from the remnants of various defunct and consolidated rail lines, MNNR was formed to specifically serve the freight needs of the Minneapolis-Saint Paul metropolitan area.

The railroad's inception was directly tied to preserving localized rail service in an era when many larger carriers were abandoning less profitable routes.

The MNNR's heritage dates back to the Minnesota Transfer Railway, a terminal line historically owned by the Chicago, Burlington & Quincy; Chicago Great Western; Milwaukee Road; Rock Island; Chicago, St. Paul, Minneapolis & Omaha (C&NW); Great Northern; Minneapolis & St. Louis; Soo Line; and Northern Pacific.

The Minnesota Transfer was incorporated on March 22, 1893 and formed a crucial junction in the region's rail network. Originating at Merriam Park, it connected with the Milwaukee Road, then ran parallel to the Great Northern Railway before branching north, intersecting the Northern Pacific tracks on its route to the New Brighton stockyards.

Further expanding its reach, the company acquired the Minnesota Belt Line Railway in 1898. This strategic 14-mile line stretched from Belt Line Junction in Fridley – where it met the Northern Pacific and Great Northern tracks – to the Minneapolis stockyards in New Brighton.

Beyond its role as a connector, the railway provided vital transfer and terminal services to major railroads while also serving a diverse range of local industrial customers. It efficiently funneled up to 3,500 cars daily through the bustling St. Paul freight yards and played a direct role in originating and delivering up to 400 carloads of freight from industries situated along its lines.

On February 1, 1987, the Minnesota Commercial Railway entered into a lease agreement for the Minnesota Transfer, inheriting an operation handling a modest 6,000 revenue units annually.

Under the Minnesota Commercial's stewardship, the railway experienced a remarkable turnaround. By 2008, traffic had surged to over 46,000 revenue units, a testament to the company's operational efficiency and revitalization of the railway's significance.

Along with inheriting the Transfer's primary routes, the newly-established railway also secured trackage rights and long-term leases on several adjoining lines.

Ownership of much of the property remains with MT Properties, Inc.—a joint subsidiary of BNSF, Union Pacific, and Canadian Pacific—and is now on a 50-year lease to Minnesota Commercial.

Operations and Services

At around 150 miles of track, MNNR operates an extensive network in and around the Twin Cities, focusing primarily on freight transportation. Unlike major Class I railroads, whose primary business might span thousands of miles and cross multiple state lines, MNNR's strength lies in its ability to provide highly personalized and efficient services within a concentrated geographic area.

The railroad specializes in "last mile" logistics—a critical component in supply chain management where the final drop-off to the customer is vital. MNNR’s fleet handles commodities ranging from agricultural products, such as corn and soybeans, to industrial materials like steel, asphalt, and chemicals. The close-knit relationship it has cultivated with local businesses is a testament to its operational agility and commitment to customer service.

In addition to its freight services, MNNR also provides ancillary services, including car repair and storage. These additional revenue streams help sustain operations, particularly in economic downturns, and enable the railroad to offer comprehensive rail solutions to its clients.

Minnesota Commercial B23-7 #44 has brought in job #020 from the north and is now switching his train out at Midway Yard, in St.Paul on August 29, 2015. Doug Kroll photo.

Minnesota Commercial carries out daily interchange with Canadian National and Union Pacific, while deliveries from Canadian Pacific run seven days a week, with pickups arranged as needed. BNSF interchanges take place three times a week, and exchanges with Twin Cities & Western are conducted on an as-needed basis.

The railway's four to six regular daily jobs handle a diverse portfolio of freight, encompassing grain, steel, chemicals, plastics, lumber, and more—essentially everything but automotive, intermodal, and coal.

As economic forces and regulatory landscapes have shifted, so too has Minnesota Commercial's network. While the railroad operates under a Positive Train Control waiver for its primary routes, trackage rights requirements for interchange with BNSF at Northtown and service to Andersen Windows in Bayport via Union Pacific have led to those duties being ceded to the Class I railroads.

Commercial gentrification, particularly around the University of Minnesota, has resulted in the displacement of some customers, coinciding with the university's transition from coal to natural gas for power generation.

While some larger, more visible customers in the area have moved on, transload business still offers rail enthusiasts occasional glimpses of activity in the Dinkytown Trench—a location once traversed by passenger trains traveling to and from the Minneapolis Great Northern Depot via the iconic Stone Arch Bridge.

Diesel Roster

Model Type	Builder	Road Number	Serial Number	Completion Date	Notes/Heritage
S11m	MLW	CTM-1	82563	7/1959	ex-CP #3779, built as CP #6621.
Slug	BLW	T-1	75499	5/1952	ex-Peabody Coal $2235; ex-B&O #2235; built as B&O AS16 #901.
Slug	GE	T-2	43873	4/1982	Built as NS B30-7A #3501
Slug	GE	T-3	42307	3/1979	Built as Conrail B23-7 #1969
RS3	Alco	1B	78301	9/1950	Retired.
M420W	MLW	35	M6092-15	2/1977	Built as CN #3574
B23-7	GE	40	42328	4/1979	Built as Conrail #1990
SF30B	ATSF	42	37523	12/1970	Built as AT&SF U23B #6332. The unit was wrecked and rebuilt in 1987 as #7200.
B23-7	GE	43	42410	4/1979	Built as AT&SF #6364.
SF30C	ATSF	50	38890	3/1973	Built as AT&SF U36C #8728. Rebuilt as SF30C #9501 in 1985.
B30-7	GE	54	41651	12/1977	ex-BN #5487; built as Frisco #865.
C30-7	GE	55	41409	12/1976	Sold to National Railway Equipment.
C30-7	GE	56	43573	6/1981	Built as AT&SF #8146.
B39-8	GE	58	45490	10/1987	ex-RLCX #8581; built as LMX #8581.
C36-7	GE	59	55	5/1978	Built as Hamersley Iron #5059.
C424M	Alco	62	84558	5/1963	Sold to National Railway Equipment.
C424M	Alco	63	84550	5/1963	ex-Genesee & Wyoming #63; ex-D&H #463; ex-Conrail #2482; built as Erie Lackawanna #2408.
GP7	EMD	66	9939	11/1950	Scrapped.
B23-7	GE	68	42310	3/1979	Sold
M636	MLW	71	6031-12	3/1970	Built as CP #4711.
M630	MLW	73	6030-08	19/1969	Built as CP #4573.
B36-7	GE	75	43791	11/1984	Built as SP #7754.
B36-7	GE	76	44973	1985	ex-Transkentucky Transportation #5884; ex-CSX #5884; built as Seaboard System #5884.
RS23	MLW	80	82583	4/1958	Built as CP #8031.
RS-18u	MLW	81	82452	4/1958	Sold
RS18u	MLW	82	82453	4/1958	Built as CP RS18 #1839.
RS18u	MLW	83	82464	4/1958	Built as CP RS18 #1837.
B30-7A(B)	GE	85-B	44443	9/1983	Built as BN #4085.
B39-8	GE	84	45452	10/1987	ex-RLCX #8543; built as LMX #8543.
B39-8	GE	87	45483	10/1987	ex-RLCX 8574; built as GE Leasing (LMX) #8574.
B30-7	GE	88	41652	12/1977	Built as Frisco #866.
NW2	EMD	100	8525	5/1949	Built as EJ&E #441.
SW1200	EMD	110	21059	3/1956	ex-ILSX (Independent Locomotive Service) #110; built as Norfolk & Portsmouth Belt Line #110.
SW1200	EMD	200	20068	11/1954	Sold
B23-7	GE	202	42549	8/1979	Built as Conrail #2002.
SW1500	EMD	302	33898	3/1968	Sold
SW1500	EMD	303	34724	4/1969	Traded to WC for GB&W units.
SW1500	EMD	304	34725	4/1969	Traded to WC for GB&W units.
SW1500	EMD	306	36486	5/1970	Sold to NRE.
RS20u	Alco	307	81286	6/1955	Sold to NRE.
C424	Alco	311	84559	9/1963	Retired.
C424	Alco	313	3382-04	1/1965	Built as GB&W #313
C424	Alco	314	3382-08	9/1965	Built as GB&W #3314.
RS27	Alco	316	83604	3/1962	ex-GB&W #316; built as C&NW #903.
RS27	Alco	318	83602	3/1962	ex-GB&W #318; built as C&NW #901.
GP7	EMD	400	9947	8/1952	Sold to NRE.
GP9	EMD	401	19553	6/1954	Sold to Green Mountain Railroad.
CF7	EMD	484	9605	5/1950	Retired.
RS3	Alco	1108	78066	6/1950	Retired.
RS3	Alco	1608	80737	5/1954	Retired.
B23-7	GE	1978	42316	4/1979	Built as Conrail #1978.
B23-7	GE	1982	42320	4/1979	Built as Conrail #1982.
B23-7	GE	1983	42321	4/1979	Built as Conrail #1983.
B39-8E	GE	8543	45452	11/1987	ex-NREX #8543; ex-RLCX #8543; built as LMX #8543.

Minnesota Commercial M630 #73 and M636m #71 are switching the Wisconsin Central interchange at New Brighton on January 30, 2000. Doug Kroll photo.

Conclusion

The Minnesota Commercial stands as a classic example of the resilience and adaptability that typifies the American railroad industry. From its modest beginnings cobbled together from superfluous lines to becoming a key logistical artery within the Twin Cities, MNNR has consistently exemplified the virtues of regional railroading.

Its blend of historical charm and modern efficiency, community engagement, and economic impact makes it a remarkable case study in how smaller, localized railroads can thrive amid broader industry challenges.

As it looks to the future, the Minnesota Commercial Railroad is poised to continue its essential role in regional commerce and community development, embodying both the legacy and the future of rail transport in the heartland of America.