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Daugaard Won't Oppose Sale Of DM&E Line

February 14, 2014, 10:44 AM

Daugaard Won't Oppose Sale Of DM&E Line
Gov. Dennis Daugaard

PIERRE, SD -

Gov. Dennis Daugaard says he will not oppose the sale of the west end of the Dakota, Minnesota & Eastern Railroad line.

Canadian Pacific Railway announced last month that it's selling the line to Genesee & Wyoming Inc. for about $210 million. The sale is subject to U.S. Surface Transportation Board approval and Daugaard this week sent a letter to the board saying he won't oppose the sale.

However, Daugaard says the question of whether Canadian Pacific has met its obligation to invest $300 million in upgrades as part of its 2007 purchase of the line still needs to be answered.

The deal includes 660 miles of track between Tracy, Minn. and Rapid City, north of Rapid City to Colony, Wyo. and south of Rapid City to Dakota Junction, Neb.

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