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(The following article by Jeff Dankert was posted on the Winona Daily News website on May 11.)

WINONA, Minn. — Dakota, Minnesota and Eastern Railroad could begin constructing its $2 billion expansion project next year, and Winona area officials are waiting on word of how many more trains that will bring.

DM&E cleared a hurdle in April when the federal Surface Transportation Board issued a draft study saying the government would not need to impose further restrictions on DM&E to lessen noise, pollution or other potential impacts.

DM&E, based in Brookings, S.D., wants to build 280 miles of new line west to the Powder River Basin coal mines in northeastern Wyoming and upgrade its 600 miles of existing track in South Dakota and Minnesota to accommodate coal trains.

The project garnered keen interest from Winona-area officials and residents seven years ago when DM&E announced it but fell off the radar of local discussion by 2003.

Judy Bodway, Winona Director of Economic Development and Port Authority secretary, said most of the city’s recent planning has focused on existing railroad traffic — about 20 trains a day.

DM&E owns 273 miles of rail across southern Minnesota, running east to just outside Winona. Once here, DM&E moves its trains on Canadian Pacific line, which runs through Winona and north and south along the Mississippi River.

The through-town mainline crosses 14 city streets, in addition to a few crossings on the Union Pacific siding along the city’s Mississippi River front.

The city could begin building its first-ever railroad overpass this fall on Pelzer Street. Winona State University has applied for $2 million in federal funding to build an underpass at Huff Street — Winona’s busiest car-train intersection, according to Minnesota Department of Transportation data.

The next target for an overpass would be on the east end, possibly at Louisa Street, Bodway said.

These projects would require a half-cent sales tax, as would the rest of Winona’s projected transportation improvements, which total $34 million to $39 million, Bodway said.

Mayor Jerry Miller said Winona’s port is not a prime destination for long coal trains, but remains a commonsense destination for grain cars. Miller said he and Bodway want to meet with DM&E officials to discover how the railroad’s plans fit Winona’s roadmap.

DM&E’s expansion received a significant boost in 2002 when it acquired I&M Rail Link, adding 1,400 miles of line in six Midwestern states to DM&E’s 1,100 miles of track.

Dave Rholl, Winona County highway engineer, said this acquisition could dilute the number of coal trains reaching Winona, giving DM&E the option to direct some coal south into Iowa before reaching Winona.

Rholl said DM&E improved two crossings in the county last year. One improvement happened on County Road 23 between Stockton and Minnesota City which received new signals and surfacing, he said. Another, east of Utica, was resurfaced, he said.

The county paid for materials and DM&E furnished the labor. DM&E has agreed to reimburse the county later when its upgrade is completed, Rholl said.