Canadian Pacific selling west end of DM&E linePublished 1:31pm Friday, January 3, 2014
SIOUX FALLS, S.D. — Canadian Pacific says it’s selling the west end of its Dakota, Minnesota & Eastern railroad line to Genesee & Wyoming Inc. for about $210 million.
The deal includes 660 miles of rail between Tracy and Rapid City, north of Rapid City to Colony, Wyo., and south of Rapid City to Dakota Junction, Neb. Also included are connecting branch lines and track from Dakota Junction to Crawford, Neb., currently leased to the Nebraska Northwestern Railroad.
Canadian Pacific Railway Limited says customers on the line ship about 52,000 carloads annually of grain, bentonite clay, ethanol, fertilizer and other products.
The new operation will be able to interchange with CP, Union Pacific, BNSF and the NNW.
The sale is subject to U.S. Surface Transportation Board approval. It’s expected to close by mid-year.
The Canadian Pacific owns the Iowa, Chicago & Eastern Railroad that runs east-west through Albert Lea. Locomotives and cars painted with DM&E and Canadian Pacific labels often are seen on the tracks, too. The tracks used to supply the former Wilson & Co. meatpacking plant and now cross the vacant property. The tracks still run near Front Street beside manufacturers such as Streater and Merrick’s.
CP in 2007 bought 2,500 miles of track and equipment from South Dakota-based DM&E and its subsidiaries for $1.5 billion.