(The Associated Press distributed the following article on January 8.)
SIOUX FALLS, S.D. — A railroad company that wants to expand its line to haul Wyoming coal across South Dakota and Minnesota to eastern markets has secured a $233 million federal loan to repair tracks and bridges along part of its existing route.
The Federal Rail Administ-ration funding gives the Dakota, Minnesota & Eastern Railroad a huge boost, DM&E president Kevin Schieffer said Wednesday. Some of the money also will be used to refinance debt.
Since much of the DM&E?s line was created from abandoned or neglected track, finding the money to pay for necessary improvements has been a constant challenge, he said.
According to the Rail Administration, funding provided by the 25-year-loan will be spread among several projects:
o $194 million will go to refinance debt for rail line acquisition.
o $25 million is for improving track between Wolsey in South Dakota and Tracy, Minn.
o $6 million goes to bridge repair between Wolsey and Springfield, Minn.
o $9 million is for refurbishing track from Owatonna to Mason City, Iowa, and from Lawler, Iowa, to Calmar, Iowa.
Companies that depend on the railroad generate nearly $7 billion dollars in sales each year, the U.S. Department of Transportation said in a news release. The improvements planned by DM&E will ensure safety so freight can continue to be hauled by rail on those routes, the department said.
With the loan secured, DM&E officials now have more time to concentrate on the Powder River expansion lines in Wyoming and western South Dakota, said Schieffer.
“We still have a long ways to go … and we?re working at that as well,” he said.