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CP Selling DM&E West End To Genesse & Wyoming

January 2, 2014, 5:42 PM

SIOUX FALLS, SD -

Canadian Pacific says it's selling the west end of its Dakota, Minnesota & Eastern railroad line to Genesee & Wyoming Inc. for about $210 million.

The deal includes 660 miles of rail between Tracy, Minn., and Rapid City, north of Rapid City to Colony, Wyo., and south of Rapid City to Dakota Junction, Neb. Also included are connecting branch lines and track from Dakota Junction to Crawford, Neb., currently leased to the Nebraska Northwestern Railroad.

Canadian Pacific Railway Limited says customers on the line ship about 52,000 carloads annually of grain, bentonite clay, ethanol, fertilizer and other products.

The new operation will be able to interchange with CP, Union Pacific, BNSF and the NNW.

The sale is subject to U.S. Surface Transportation Board approval. It's expected to close by mid-year.

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