PIERRE, S.D. — The South Dakota Department of Transportation is seeking proposals for purchase or lease of 80.8 miles of state-owned rail lines in the southeastern portion of the state.
The line between Napa Junction and Platte, S.D., includes 20.9 miles between Napa and Tyndall that has previously been leased by Dakota Southern Railway, as well as 79.9 miles between Tyndall and Platte that are railbanked for possible future use. Dakota Southern’s lease was terminated in July by the South Dakota Railroad Board because of the company’s failure to make an annual payment [see “South Dakota rail board terminates …,” Trains.com, Aug. 6, 2025].
The former Milwaukee Road branch line is part of an extensive program of state ownership begun in 1980 following the shutdown of Milwaukee operations in the state [see “South Dakota success,” Trains Magazine, September 2016].
“Through strategic public ownership and private partnerships, most state-owned lines have been restored or returned to private operation,” Transportation Secretary Joel Jundt said in a press release. “The Napa-Platte rail line represents one of the final segments under South Dakota ownership. In September 2025, the South Dakota State Railroad Board authorized the SDDOT to begin a competitive process for returning the Napa-Platte rail line to private operation. The state’s objective is to return the Napa-Platte rail line to private operation in a way that enhances freight opportunities, supports local industries, and promotes long-term economic growth.”
The Invitation for Proposals published today (Oct. 6, 2025) seeks two types of proposals: for sale of the entire 80.8 miles between Napa and Platte, or lease of the Napa-Tyndall segment. Full details are available here. A tour of the line is scheduled for Oct. 15; the deadline for proposal submissions is Dec. 19, with the Railroad Board scheduled to review proposals on Jan. 21, 2026.
