Willmar Rail Park Development Advances with New Investments

The city of Willmar, Minnesota, is poised to establish a significant 144-acre rail park as part of an ongoing development initiative aimed at enhancing its industrial capabilities. This project, which includes an additional 335 BNSF Railway-certified acres, is set to transform the local economy by providing businesses with essential rail access.

BNSF Railway has granted final approvals for the construction of railroad spurs into the rail park, which will be developed and managed by Midwest and Bluegrass Rail. Certification from BNSF is expected to be finalized this fall, allowing for extensive marketing efforts targeting businesses reliant on rail transport. The certification process entails rigorous evaluations of economic development criteria, ensuring that the site meets high readiness standards that minimize development risks.

Originally anticipated to start construction this year, the establishment of rail spurs at the Willmar Rail Park has now been pushed back to 2026 due to delays with BNSF. Nonetheless, the groundwork for these projects has been laid, largely thanks to the completion of the Willmar Wye in 2022, a crucial railroad bypass that facilitates more efficient train movements. This bypass was made possible through a public-private partnership that included contributions from the city of Willmar, Kandiyohi County, and several federal agencies.

The Willmar Wye project, which began in earnest in 2015, received a $10 million federal grant aimed at improving transportation infrastructure. Overall, the project cost approximately $50 million, funded through various sources. Key components included the realignment of U.S. Highway 12, construction of two bridges, two roundabouts, and an access road to facilitate business operations along First Avenue West. Road construction commenced in July 2019 and was completed by the end of 2021. BNSF began laying tracks for the new rail line in the fall of 2021, concluding the work in September 2022.

The new rail line connects the Morris and Marshall subdivision lines, enabling trains to bypass the city of Willmar without needing to turn around, effectively reducing train traffic at crossings and minimizing disruptions for local residents.

In September 2023, MB Rail finalized the acquisition of the 144 acres adjacent to the Wye, investing $1.2 million in the property designated for the rail park. Plans for the park include a rail loop with four spurs, designed to accommodate various businesses requiring direct rail access.

Despite construction not yet commencing, the park has already attracted its first tenant: the grain logistics company NexYst 360. The company is utilizing a decommissioned airport runway on the site for staging soybeans in climate-controlled containers to minimize spoilage. Future plans involve utilizing the runway for loading and unloading rail cars.

In November 2023, the Willmar City Council approved the sale of 13.67 acres to Duininck Concrete for $123,030. This land, located northeast of MB Rail’s acquisition, will host a ready-mix plant that will support the construction of the Willmar Rail Park.

Additionally, the city has secured a $900,000 Transportation Economic Development grant, which is expected to fund improvements to Highway 40 to accommodate the increased traffic generated by the rail park. Planned enhancements include the addition of turn lanes into the park from the highway, with construction set to begin in 2026.

The development of the Willmar Rail Park represents a substantial investment in the region’s infrastructure and economic future, promising to attract new businesses and enhance the operational capabilities of existing ones.