SISSETON, S.D. — South Dakota Gov. Kristi Noem’s proposed state budget includes $6.25 million to help upgrade the Sisseton-Milbank Railroad, a 37-mile line serving a grain elevator which has deteriorated to the point that traffic can only creep along at 5 mph or less, and averages about one derailment a year.
The Mitchell Republic reports that the state funding, along with $24 million from a grant application submitted to the federal government, would allow the line to be significantly upgraded. That, says Mark Wegner, president of the Twin Cities & Western Railroad, which bought the Sisseton-Milbank in July 2012, would transform business that is “not sustainable” at the current pace.
“There’s just a ton we can do if the line is upgraded,” Wegner told the newspaper, citing traffic such as lumber and other materials that currently moves by truck, “so it’s kind of an economic development opportunity as well as an infrastructure improvement.”
The line, which currently carries grain from an elevator in Sisseton to Milbank, where it makes a short trip on BNSF to connect to the west end of the TC&W. But the short line’s track — some of which dates to 1884 — can only handle 263,000-pound cars rather than the current 286,000-pound standard, which prevents it from capturing additional business.
The state funding, if approved by the legislature, would come from a 2023 fiscal-year surplus, and would be available as soon as a decision is announced on the federal grant, which should come in spring or summer 2023.
Did anyone notice the cargo: The line, which currently carries grant from an elevator
Do they carry Ulysses S Grant?
or maybe a federal grant
Railroads have a hard time keeping their fixed capital in good repair in any case. Once it reaches a nadir money has to be found to upgrade it. States are willing to do this because it generates profits on which taxes will be paid…employment also and people will also pay taxes. That’s why the legislature will call it an investment. Cheesy but in reality it is.
South Dakota is a great Republican state. Why is the governor asking for federal subsidies? Go figure!
Got to get the confiscated tax money back somehow.
One derailment a year? That’s better than the Class I folks. Perhaps one derailment per day.
Many of the grain lines in that part of the country only see a train a week, sometimes only a handful of trains a year, so one derailment a year would be equivalent to a daily derailment on the Transcon.
Private enterprise at its best: succeeding through a state subsidy (just like the first transcontinentals)
And just like every trucking company in existence.
Yep.
Photo caption “at far right, shown in green”….
???? at LEFT ????
Far left would be appropriate….I seen the same thing!
I see the editor corrected the mistake above…looks good now.