Governor Announces State-owned Railroad Improvements

Press Release

Governor Announces State-owned Railroad Improvements

Gov. Mike Rounds has authorized the state Transportation Department to enter into agreements to fund $10.7 million in improvements on three state-owned railroad lines.

The cost of the improvements would be repaid by a $20 per car surcharge on freight hauled on the lines. Although essentially loans, repayment is based on the number of rail cars moving on the lines. No interest will be charged.

"The goal for these projects is to improve safety, reduce shipping costs and make the state-owned lines more attractive to industries that need rail access," Gov. Rounds said. "This also allows new industries to locate on our lines, creating economic expansion and jobs."

The proposed agreements will be offered to the regional railroad authorities that lease the lines from the state, said Bruce Lindholm, program manager in the state Transportation Department's Office of Local Transportation Prog rams.

One project, estimated at a $1,071,700 cost, would improve the Huron-to-Yale line, which is 15 miles long. It would take from 30-45 days to complete. This line is leased from the state by the East Central Regional Railroad Authority.

A second project, estimated at $2 million, would improve the Britton line from Aberdeen to Geneseo Junction. The line is 76 miles long. The project is estimated to last for 30-45 days. This line is leased to the Marshall County Regional Railroad Authority.

The third project, estimated at $7,610,500, would improve a portion of the 67-mile-long Canton to Elk Point line. It is projected to take 60 days to complete. The state line is leased to Sioux Valley Regional Railroad Authority.

The three projects could create up to 32 direct construction jobs, Lindholm said.

Source