A DM&E ethanol train - Date unknown Mike Condren.

8 August 2013

SD Gov Asks Board to Look Into
DM&E Obligations

Pierre South Dakota USA - South Dakota Governor Dennis Daugaard on Thursday asked federal authorities whether Canadian Pacific Railway has lived up to its obligations with its purchase of the Dakota Minnesota & Eastern Railroad.
 
Daugaard said rail infrastructure is critical to business and agriculture in South Dakota, and Canadian Pacific has indicated that it may sell the DM&E line west of Tracy, Minnesota. He said that would mean the new buyer of the line would have limited or no opportunity to ship cargo beyond Tracy unless the cargo is shipped using CP.
 
The governor said his petition to the federal Surface Transportation Board serves as an official inquiry.
 
"This examination is imperative because past support for the Canadian Pacific's purchase was based chiefly on promises it made to the STB," Daugaard said in a statement.
 
Ed Greenberg, a CP spokesman, declined comment Thursday afternoon.
 
Canadian Pacific in 2007 bought 2,500 miles of track and equipment from South Dakota-based DM&E and its subsidiaries for US$1.5 billion.
 
In December, CP announced that it was looking into the possibility of selling 660 miles of track in South Dakota and three surrounding states. The announcement came a day after CP said it was mothballing plans to extend its DM&E network into the Powder River Basin to ship Wyoming coal to power plants in other states because of weakening demand for coal.
 
The railroad did not directly link the two decisions.
 
Daugaard said before DM&E was sold, the line provided shipping service to critical transportation hubs including Minneapolis, Chicago, and Kansas City.
 
Author unknown.

Vancouver Island
British Columbia
Canada