New Owners And Name For D.M. & E. Railroad
Genesee & Wyoming Inc., a large short line railroad company is purchasing the western portion of the D.M. & E. Railroad from Canadian Pacific. According to a joint media release, Genesee and Wyoming will operate all of the original track from Tracy, Minnesota west, which includes track in South Dakota, eastern Wyoming, and northwestern Nebraska.
The proposed sale came shortly after the Surface Transportation Board decision requiring the Canadian Pacific to produce proof of capital investments made to the line, as requested in a petition filed by the Governor on behalf of South Dakota.
The Genesee & Wyoming, Inc. rail company has been in business over 100 years. It owns, operates and leases over 15,000 miles rails in the United States, Canada, Australia, Belgium, and the Netherlands. They operate 111 railroads, and serve 35 ports in North America.
With new ownership will come a new name, the Rapid City, Pierre, and Eastern Railroad. The sale is expected to be completed by mid summer and needs approval of the U.S. Surface Transportation Board. Price for the line is quoted as $210 million.
Customers ship about 52,000 carloads of grain, ethanol, fertilizer, bentonite clay and other products annually.
In a media release, Governor Daugaard said, “I am hopeful this sale to a short line operator is in the best interest of the state. The fact the proposed sale is to a well-known short line operator appears to be a good step in the right direction.”
Genesee & Wyoming is listed on the New York Stock Exchange as GWR.