The City of Crookston has commenced earthwork for the Colburn Industrial Park Railroad Spur. Gowan Construction started dirt work this week, signaling progress on a key freight infrastructure project.
Utility work by Otter Tail Power is slated to begin the week of October 13, 2025, immediately following the grading phase.
Project Importance & Economic Impact
The rail spur is expected to reduce freight costs for bulk producers in the region. For instance, soybean growers could benefit from fewer trucking trips before moving goods to export points.
It also strengthens the industrial park’s appeal to manufacturing, logistics, and agribusiness firms. By providing direct rail access, the site becomes more competitive for businesses needing heavy shipments.
Funding & Grant Support
This project is funded via a Minnesota Rail Service Improvement (MRSI) grant, which supports freight rail access improvements tied to regional economic growth.
Although no other MRSI grants were awarded across the state in 2025, Crookston’s economic development authority is actively exploring additional funding for a second construction phase.
Project Factsheet: Colburn Industrial Park Railroad Spur
Project Name: Colburn Industrial Park Railroad Spur
Location: Crookston, Minnesota, USA
Initiating Agency: City of Crookston / Crookston Economic Development Authority
Construction Contractor: Gowan Construction
Grant Program: Minnesota Rail Service Improvement (MRSI)
Start of Work: October 2025 (earthwork)
Utility Start: Week of October 13, 2025
Track Construction Phase: Late 2025 or spring 2026 (weather dependent)
Phase 2 Scope: Rail yard area, improved public access, truck-rail interface
Supporting Infrastructure: Roads, water, wastewater across 73 acres (via separate grant)
Land Contributions: CHEDA land donation to Minnesota Northern Railroad
Key Stakeholders: Crookston EDA, Minnesota Northern Railroad, Otter Tail Power, local businesses
Phasing, Schedule & Constraints
The team aims to complete dirt work before the ground freezes. Should winter conditions make rail installation infeasible, track construction will resume in spring 2026.
Phase 2 will expand public access. It includes adding a rail yard area within the industrial park, enabling trucks to enter and exit more efficiently.
Meanwhile, the Crookston Economic Development Authority is working with Minnesota Northern Railroad. This will ensure continuity of access for nearby businesses along South Front Street.
Context & Supporting Infrastructure
Earlier, the city secured a $3.3 million infrastructure grant to support roads, water, and wastewater lines across 73 acres in the industrial park.
Also, in mid-2025, Crookston Housing and Economic Development Authority donated land to Minnesota Northern Railroad as in-kind match for the rail spur grant obligations.
The railroad spur proposal has been under discussion since at least 2024. During that year, the City Council reviewed plans to donate 15 acres of land and pursue grant funding for rail switches and track work.
Challenges & Risks
- Weather & timing: Winter freeze may delay track laying.
- Funding continuation: Additional phases depend on grants or local match funds.
- Land access & coordination: Ensuring adjacent properties retain access during construction.
- Rail ownership & maintenance: Establishing operational agreements with Minnesota Northern Railroad.
Anticipated Benefits
Once completed, the spur will enable direct rail service to the industrial park. This lowers logistic costs, attracts new business, and supports freight volume growth.
It also positions Crookston more strongly in the regional supply chain, encouraging industrial investment in rural Minnesota. A similar strategy is being adopted internationally through Ethiopia’s first domestically financed railway line — the AMG Industrial Park Railway Project, which aims to boost trade efficiency and attract private investment by linking industrial hubs directly to transport networks.
