14 October 2008
Editorial: The Legacy of DM&E's Kevin Schieffer
Mankato Minnesota USA - For many people in southern
Minnesota, Kevin Schieffer was an evil railroad baron, intent on bullying through a plan to build a coal line without enough
consideration of those affected.
For many others here, and especially in South Dakota where his DM&E railroad is based, he was viewed as a driven entrepreneur
who's plan would bolster the rural economy, help get grain and other commodities to market, and create an efficient
rail-shipping system.
Schieffer, who left the company rather suddenly last week, is more likely a mix of both portrayals.
Schieffer is nothing if not driven, resourceful, and successful. He took a small, broken-down railroad, and after years
of work, succeeded in making it a valuable asset by gaining federal approval to build and rebuild rail line from Wyoming to the
Mississippi River to carry low sulfur coal for power plants.
Schieffer was passionate when he talked of what he believed would be the economic advantages for rural South Dakota and Minnesota if
the rail were built.
But Schieffer was also at times aloof and bullying and his political and financial ties to U.S. Sen. John Thune, who quietly pushed
legislation favoring DM&E, always had a questionable feel to it.
For those that fought the coal line, including many in Mankato and in Rochester, Schieffer was clearly viewed as the enemy.
But Shieffer, who abruptly left the company, is no longer in the picture. Instead, DM&E's new parent - Canadian Pacific Railway -
will be calling the shots.
CP just got federal approval of its buyout of DM&E, after which CP officials announced Schieffer was out.
The questions now are whether CP will continue to push for a coal line and whether they will be more amenable to mitigation talks with
communities.
It's doubtful that CP would pay as much as $2.3 billion, with incentives, to purchase DM&E if it isn't planning to push for the
lucrative coal line expansion.
And it appears the railroad will be more open to discussions with cities that have concerns about the line. It's likely CP knew such
talks would go much smoother if Schieffer were out of the picture.
For Mankato, main issues involve keeping a coal line on current Union Pacific tracks through the city rather than building a bypass,
and getting the railroad to pay for safe street crossing and a no-whistle zone.
In Rochester, Mayo Clinic officials want any improved rail line to be moved from going through the city to bypassing it.
Two things work in both cities' favors. CP has one of the best rail safety records in North America (DM&E has one of the worst).
And CP has the financial muscle and the incentive to try to win over the communities by funding mitigation rather than fighting them
and seeing more potential delays via lawsuits or other actions.
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