DM&E sold

[89rabbit]

http://www.argusleader.com/apps/pbcs.../NEWS/70905004

DM&E to be sold to Canadian firm

By The Associated Press
Published: September 5, 2007

Canadian Pacific Railway Ltd. said that it will buy the Dakota, Minnesota & Eastern Railroad Corp. and its subsidiaries for $1.48 billion cash, gaining access to the coal-rich Powder River Basin in Wyoming.

Canadian Pacific said in a news release that it will pay $1.48 billion in cash at closing and make future contingent payments of up to $1 billion depending on progress on a long-planned expansion project by the Sioux Falls-based DM&E to carry coal from Wyoming’s Powder River Basin.

CP said the deal will expand its current network by approximately 2,500 miles and increases its access to Midwest markets for agricultural products, coal and ethanol.

“The DM&E is an excellent fit for Canadian Pacific making this a strategic end-to-end addition to our network,” Fred Green, president and CEO of CP, said in the statement. “The DM&E is a high-quality, growing regional railroad that complements our existing franchise.”

CP said it intends to spend an additional $300 million on further upgrades of the regional railroad over the next several years.

“Canadian Pacific is our natural partner and we are very pleased with this deal. The logic of this acquisition is compelling,” Kevin Schieffer, president and CEO of the DM&E, said in the statement. “I’m proud of the DM&E and the organization we’ve built. ... CP is not only a natural operating fit; we also share a commitment to our employees, our customers and the communities we serve as well as a vision for the potential of the Powder River Basin.” . . . (read more)



Go State!

[Grizzled_Jack]

Re: DM&E sold

My assumption is that CP has the resources to get the expansion done. Should be a natural tie-in to the former Soo Line routes. Good move.

[Nidaros]

Re: DM&E sold

I live in one of the small communities that will be affected by addition of 40 trains daily, one of the smaller ones west of Brookings. I haved viewed this move with a divided view point. What can be done in terms of transportation of alternative fuels is wonderful. Transportation or the lack of it has harmed SD Agriculture for decades. SD went through a phase where railroads were on a decline to the point that the common thinking was all lines would eventually be abandonded. In the mean time safety between rail and car routes has not been a big concern.

The big part that concerns me is the safety that will protect motorists against the on coming trains. I am asking: Will the new company add overpasses, signals etc to give notice of an on-coming train? This is an area that needs to be worked out. Also alternative routes needed to added for Rochester, as what folks have told me, the trains almost pass through the Mayo Clinic. As far as Brookings, I think the same route can be used, provided more signals and over passes are added. Buying a house along the rail track is done with peril. These are some of the issues that those opposing the rail upgrade have. The legal profession is probably going to be very busy over this issues in the near future.

[joeboo22]

Re: DM&E sold

I live in one of the small communities that will be affected by addition of 40 trains daily, one of the smaller ones west of Brookings. I haved viewed this move with a divided view point. What can be done in terms of transportation of alternative fuels is wonderful. Transportation or the lack of it has harmed SD Agriculture for decades. SD went through a phase where railroads were on a decline to the point that the common thinking was all lines would eventually be abandonded. In the mean time safety between rail and car routes has not been a big concern.

The big part that concerns me is the safety that will protect motorists against the on coming trains. I am asking: Will the new company add overpasses, signals etc to give notice of an on-coming train? This is an area that needs to be worked out. Also alternative routes needed to added for Rochester, as what folks have told me, the trains almost pass through the Mayo Clinic. As far as Brookings, I think the same route can be used, provided more signals and over passes are added. Buying a house along the rail track is done with peril. These are some of the issues that those opposing the rail upgrade have. The legal profession is probably going to be very busy over this issues in the near future.

I'm in agreement with your post.... I think the rail is great and in the past 5 years we have seen where the ethanol plants have been built and they are all on the rail, i have heard of one wind company that plans on building a plant on the rail and others considering it but a rail is a must.... People don't like to hear, or have to wait for trains so I don't understand why the companies don't bypass these towns. Does the rail even stop in Brookings, or Pierre or 95% of the towns that the rail goes through? Also I think it would be in the best interest for the rail company(s) to bypass these towns.... The rail has to slow down for these small towns and has to worry about pedestrians.... This will be a very interesting time in the rail industry.

[Nidaros]

Re: DM&E sold

Maybe the outfit purchasing the DE & M will have the resources to build altnative routes and by passes. Building a by pass is very costly, since it involves obtaining right of ways that they dont now have and the efforts often take time and patience. Because of Mayo Clinic, a Rochester by pass is needed. With Brookings, I dont know. Many people were very vocal about a by pass around Brookings a few years, never in my back yard. No fun to own a rail road,

[89rabbit]

Re: DM&E sold

http://www.argusleader.com/apps/pbcs...709090301/1001

DM&E merger opens new markets for ag products

By Peter Harriman
pharrima@argusleader.com
Published: September 9, 2007

For farmers and ethanol producers in South Dakota, a map of the merged Dakota, Minnesota & Eastern Railroad and the Canadian Pacific Railway offers as much promise as a Christmas catalogue - in three directions.

Ethanol producers look east, and in the CP's line through Wisconsin, they see a second route to the main ethanol distribution center of Chicago to complement the DM&E's existing access through Iowa. Furthermore, the CP continues east and offers uninterrupted service to New England, New York and Philadelphia, the most lucrative market for ethanol on the East Coast.

"The East Coast is where the greatest percentage of ethanol is used now, and in the future, it is going to be critical to have as many ways to get out there as possible," says Ron Lamberty of the American Coalition for Ethanol.
Purveyors of dried distiller's grain, an ethanol byproduct used as a livestock feed, can look at the DM&E's tie-in with the CP in Minnesota and the CP's route north to Canada's Prairie Provinces and see the prospect of new markets opening in that country's burgeoning hog production industry, says Lisa Richardson, executive director of the South Dakota Corn Growers.

Canada exported 8.8 million feeder pigs and hogs to the U.S. in 2006 to be finished and slaughtered here. Also, the CP access to ports on the Great Lakes and the East Coast might help establish a market for distiller's grain in Europe.
"We can ship that into the (European Union) without a tariff. They don't define it as corn. They are short of protein there, and they define it as biotechnology," which is not subject to protective tariffs, Richardson says.
Going west

Farmers look west, and in the CP's line across Canada to the port of Vancouver, B.C., lies the prospect of new grain and soybean exports to the Pacific Rim.

"You look at the map, and that railroad does have good connections for us to get to the West Coast. That helps with wheat shipments west, and we're kind of excited about it," says Rick Vallery, executive director of South Dakota Wheat. . . . (read more)


Go State!

[Jacks#1Fan]

Re: DM&E sold

Maybe the outfit purchasing the DE & M will have the resources to build altnative routes and by passes. Building a by pass is very costly, since it involves obtaining right of ways that they dont now have and the efforts often take time and patience. Because of Mayo Clinic, a Rochester by pass is needed. With Brookings, I dont know. Many people were very vocal about a by pass around Brookings a few years, never in my back yard. No fun to own a rail road,

Just because the Canadian Pacific may have the resources and credit to get the DM&E Power River Basin project built doesn't mean they will be easily shelling out money for expensive bypasses. The railroad has the right of way and the Surface Transportation Board is not going to require them to build bypasses. That doesn't mean safety will be sacrificed. In fact, I do think it means the CP will be more generous in providing safety measures. With automatic stop gates and upgraded rail through the cities (such as Brookings, etc), 100-unit train cars will be able to move through intersections much more speedily and will actually mean less wait than the trains do now. It will take years to complete, and years to build up to 30+ trains a day (half of which will run when most people are working or sleeping). Rochester may just have to live with it also. Finally, a bypass means moving the trains into someone else's backyard -- just away from your backyard where the train has been for years. The PRB project needs to be built...shades of Ayn Rand...maybe we can finally move a lot of cargo the way it should be...instead of trucks on our roads as we are now!

[Nidaros]

Re: DM&E sold

Jack#1:
Very good points. Especially about the right of ways and that apparently has kept Mr. Schiffer focused on building his line and upgrade of existing tracks.

I think if the stop gates etc are put in place and that part is upgraded that will probably take care of my safety concerns. I know of one acident near Arlington where an individual on his way to work on a foggy morning did not see or hear the DM &E train coming and lost his life. With more trains and no upgrades in terms of safety, more fatalities are likely. I can hear the one or two trains now that travel daily from Brookings west to who knows where. I suspect I will adjust to the sound, but sufficent saftey does concern me now.

NIMBY, not in my bacK yard is a concern for many. Not me though, but again I agree NiMBY will slow the reality of the train transportation down if not kill it. It will depend on who has the best lawyers.

Shopping for a house two years ago, I found the best buys in terms of price in Brookings were along Orchard Ave. Also I did look at one home that had steel supports in the basement. A reality modern home too, I might add. I do thing the economic gains of these proposal do out weigh the negatives.