(The Rapid City Journal posted the following Associated Press article on its website on February 1.)
SIOUX FALLS, S.D. — As many as 1,000 new jobs could be coming to South Dakota as Cedar American Rail Holdings moves forward with a train expansion project.
The federal Surface Transportation Board in Washington gave approval for Cedar American to control its two railroads, the Dakota Minnesota & Eastern Railroad and the Iowa, Chicago & Eastern Railroad on Friday.
The same federal board allowed DM&E to acquire IC&E last July, but Cedar American had to operate it without direct control.
The decision does not clear the way for the company’s expansion project, but it is a step in Cedar American’s plans, Cedar American President and CEO Kevin Schieffer said.
“Senators (Tom) Daschle and (Tim) Johnson have worked hard to help us get this competitive access for South Dakota farmers and other shippers,” Schieffer said.
Evan Nolte, president and chief executive officer of the Sioux Falls Area Chamber of Commerce, said the company’s expansion plans are good news.
“I understand there’s still a lot of work toward the larger project, but it’s still very encouraging,” Nolte said. “It is significant for the whole state, and especially for the Huron economy. Boosting those small towns is important.”
The railroad expansion could bring 500 new jobs to Sioux Falls and another 500 jobs to Huron. For now, employee numbers will go from 60 to 150 at the newly renovated headquarters in downtown Sioux Falls.
“As we move ahead, we would have a tough time getting 500 people in that building,” Schieffer said. “But as the expansion project comes together, finding office space would be the least of our worries.”
Sioux Falls positions will be office jobs in finance, revenue accounting, marketing, engineering, transportation and other administrative areas, Schieffer said. Although he did not have exact wage information, he said that both current and future positions are “high-paying relative to the Sioux Falls market.”
Huron jobs are related to an operations center that would include maintenance and repair facilities, a transportation depot and some administrative offices.
The company’s expansion plans include hauling coal from Wyoming’s Powder River Basin through rail lines in South Dakota to markets farther east.