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Bids For SD Rail Rehab Project Over Budget

May 1, 2011, 10:33 AM

MITCHELL, SD - Bids have come in over budget for reconstruction of a state-owned railroad line between Mitchell and

The state will begin advertising again for bids beginning Monday for the estimated $20 million project.

Bruce Lindholm in the state Office of Railroads says railroad cross ties are currently in short supply but that should ease when bidding reopens on May 18. He says there were only enough ties for 16 miles of the 61-mile project.

The state will use approximately 20,000 tons of steel in the reconstruction of the railway. The state had estimated $650 a ton for steel but bids came in at about $750 a ton.

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