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(The Associated Press circulated the following article on December 13.)

PIERRE, S.D. — The Dakota, Minnesota & Eastern Railway’s $6 billion coal-train expansion project is part of a shift in the nation’s transportation system, railroad president Kevin Schieffer said.

The railroad industry is in a position to gain market share from the trucking industry, he told the Pierre and Fort Pierre Rotary Club on Monday.

“That pendulum has swung for the first time in the last 10 years. The cost of gas and energy prices have escalated so much that railroads are much more efficient than trucks, and they’re much safer than trucks,” Schieffer said. “(The railroad) is a mode of transportation that is experiencing something of a renaissance on the national level.”

The DM&E’s proposal is to expand into Wyoming and haul low-sulfur coal east across a refurbished line through South Dakota and Minnesota.

“We weren’t just sitting out in a corn field one day and came up with this idea to build this extension on our line,” said Schieffer. “It came about because the electric and utility industry came to us.”

The railroad has applied for a $2.3 billion loan to help finance the project.

Schieffer also met with Pierre Mayor Dennis Eisnach to discuss the idea of building a bypass at Pierre to keep the coal trains out of the city. Schieffer reaffirmed a commitment of $10 million toward a bypass is that is the preferred option, Eisnach said.

Schieffer said that although the railroad is willing to help the city, he believes that most people will not mind the railroad going through town once they see the safety measures and improvements in place.