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Gov. Daugaard Not Opposing Sale of Original DM&E Rail in South Dakota


Gov. Dennis Daugaard has announced he will not oppose the sale of the Dakota, Minnesota and Eastern (DM&E) to the Genessee & Wyoming (G&W). He sent a letter on Feb. 12th to the Surface Transportation Board (STB), stating his position.

“After an extensive review … I have determined not to oppose the Canadian Pacific’s sale to the G&W,” said Gov. Daugaard in the letter. “I have great hope for the G&W’s future in South Dakota, and I want to express a warm welcome to them.”

After Canadian Pacific (CP) announced it would sell to the G&W, the Governor and state officials reviewed the sales contract, visited Union Pacific’s facilities in Mankato, Minn., and spoke extensively with G&W’s top executives.

In the letter, the Governor also stated that he will continue the state’s petition to the Surface Transportation Board, saying that questions over whether CP upheld its promises to improve the line still need to be answered.

When CP indicated that it would sell the line west of Tracy, Minn., the Governor filed a petition with the STB. The petition requested that the STB look into whether CP fulfilled the representations it made while seeking to acquire the line. Based upon CP’s representations, the STB approved the company’s purchase of the DM&E Railroad in 2008.

After filing the petition, the Governor traveled to Washington, D.C, to discuss the importance of the line with U.S. Agriculture Secretary Tom Vilsack and U.S. Transportation Secretary Anthony Foxx.

When the sale of the line from the Canadian Pacific to Genessee and Wyoming was originally announced, the plan was to close the sale by the end of 2014.


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