.]]
('''DM&E''') is a ). Retrieved
January 5 2005 . Although
Cedar American Rail Holdings manages both railroads, in reality it is a subsidiary of Dakota Minnesota & Eastern Railroad Corporation, but
Iowa, Chicago And Eastern Railroad is a subsidiary of Cedar American Rail Holdings.
DM&E began operations on
September 5 1986 over tracks that were spun off from
Chicago And North Western Railway in South Dakota and Minnesota. Much of the negotiations were handled by the office of Senator
Larry Pressler and his legal counsel
Kevin V. Schieffer . After a successful decade of growth for DM&E, Schieffer succeeded
J. C. McIntyre as president of the railroad on
November 7 1996 .
In
1997 DM&E announced plans to build into
Wyoming 's
Powder River Basin to become the third railroad (after
Burlington Northern And Santa Fe Railway and
Union Pacific Railroad ) to tap into the region's rich
Coal deposits. The
Surface Transportation Board (STB) released the final Environmental Impact Statement (EIS) on
November 19 2001 ; with the final EIS in place and approval from the STB,
As Of 2004 DM&E is pursuing financing to undertake the expansion as proposed. The construction is planned to be completed in
2007 and the addition of the revenues gained from hauling coal along the new line has the potential of elevating the combined DM&E/IC&E system from AAR's Class II to
Class I .
DM&E purchased the assets of ), "Wall Street Journal", New York, New York.
In the early
1980s ,
Chicago And North Western Railway (CNW) announced plans to abandon a section of railroad through
Minnesota and
South Dakota that dates to
1859 . Due to pressure from customers and Senator
Larry Pressler from South Dakota, a deal was reached creating Dakota, Minnesota and Eastern Railroad out of sections of CNW from
Winona, Minnesota , to
Rapid City, South Dakota . This deal also included buildings,
Rolling Stock and
Locomotive s, mostly rebuilt
EMD SD9 s, from the CNW. DM&E began operations on this track on
September 5 1986 . The railroad was expanded in
1995 when it acquired additional former CNW branch lines from
Rapid City, South Dakota , to
Colony, Wyoming , and
Crawford, Nebraska .
From startup to the railroad's 10 year anniversary in
2005 .
At the end of 1996,
2005 ).
In
1997 , DM&E announced plans to expand into the
Powder River Basin (PRB) in
Wyoming and start providing
Unit Coal train service from that area. The railroad filed an application for the expansion to the
Surface Transportation Board (STB) on
February 20 1998 .
Burlington Northern Railroad built into this area in
1979 , and
Chicago And North Western Railway (CNW) built into the area by
1984 (a project that was completed by CNW's successor
Union Pacific Railroad ). DM&E would become the third railroad to tap into the coal deposits in the region.
DM&E's expansion would require the construction of 281 ). Retrieved
January 5 2005 .
An analysis of the plan by Minnesota's
Dakota, Minnesota and Eastern Railroad Working Group in 2001 showed support among customers and freight shippers, but DM&E's expansion plan led to complaints among residents in communities along the railroad's right-of-way. While some communities welcomed the railroad's expansion plan as an opportunity for increased business within their own cities, other residents and businesses felt that roads in the area were not built with enough overpasses and underpasses to deal with the traffic flow problems that the longer and more frequent unit trains would produce at
2005 .
While a bypass would remove the trains from sometimes crowded city streets, it would require purchasing land outside of the city that was privately owned. One resident summed up the problem saying that if the railroad didn't go through the city, "it would just go through someone else's place" in the country. Schieffer presented the railroad's view on this issue in a public meeting in Rochester saying:
:"I don't think we have to go out and tell someone else, `We want to take your land instead of developing our own property because somebody thinks there might be a problem in the city.' If there's a problem in the city, then there's an opportunity for you to build. But before we establish that there is a problem, it's pretty hard for me to walk up to somebody's door and say, `Hi. I'm from the railroad and we're going to take your land.' I've got to do that out West, and it's not fun."Hildebrand, John (November
2005 .
After a period of public comment that lasted until ,
2005 .
The court upheld the STB's approval with stipulations for the new line's environmental impact, including the projected increase in the frequency of
2006 .
In April ), ''Argus Leader'', Sioux Falls, South Dakota, p. 3B. Retrieved
January 20 2005 .
With the final EIS in place and approval from the STB,
As Of 2004 DM&E is undertaking the expansion as proposed. Construction is expected to be completed in
2007 . This expansion has the potential of upgrading DM&E's status from
AAR 's
Class II to
Class I .
DM&E hauled nearly 60,000 carloads of various freight shipments in fiscal year 2002, serving approximately 130 customers along the railroad's mainline. Of these shipments, 53% were
Grains or grain products, 24% were
Bentonite and
Kaolin Clay , 7% were
Cement and 5% were
Wood and lumber products; the remaining 11% were split among all other types of freight.
.]]
On
February 21 2002 DM&E announced that it would purchase the railroad assets of 1700-mile
I&M Rail Link (IMRL) from its then current owners Washington Companies and
Canadian Pacific Railway . DM&E renamed the IMRL property to
Iowa, Chicago And Eastern Railroad (IC&E). Although a purchase price wasn't stated in the original announcement, an article in the May
2002 ''Trains Magazine'' suggests that several industry sources believed the total to be around $150 million.Glischinski, Steve (May
2002 ), DM&E becomes "a significant national player", ''Trains Magazine'', p. 14.
DM&E and IC&E combined management under the holding company
Cedar American Rail Holdings .
Locomotive s of both railroads were given a unified paint scheme (see below) and interchanges were streamlined between the two railroads. The administration of both railroads is handled by Cedar, further streamlining processes between the two railroads. As a result, the combined DM&E/IC&E system makes up the largest Class II railroad (by route-miles) in the
United States ; it is also the eighth largest system of all American railroads and the only system with direct rail connections with all Class I railroads in
North America .
.]]
DM&E originally purchased used first-generation
Locomotive s from a variety of railroads, in the early years it was more common to see a locomotive with a
Milwaukee Road or
Chicago And North Western Railway paint scheme than a DM&E paint scheme. Over the years, the locomotives were repainted, and many of them are now in DM&E's paint scheme (which is closely mirrored by that of sister
Iowa, Chicago And Eastern Railroad ) of blue with a yellow stripe along its length.
DM&E eventually assigns names to all of its locomotives when they are repainted, usually after locations along its right-of-way, but a few exceptions have been named for people (like road number 550, named after Senator Larry Pressler). All of the first-generation diesel locomotives purchased from Chicago and North Western and Milwaukee Road have since been replaced with more recent locomotives, although the newer locomotives were also bought used.
DM&E has so far had two men serve as president of the railroad:
- J. C. McIntyre (1986–1996) began his railroad career in 1953, eventually working for Chicago and North Western in the early 1980s. When DM&E was formed in 1986, McIntyre became the new railroad's first president.
- Kevin V. Schieffer (1996–present) served as counsel for Senator Larry Pressler starting in 1982. Schieffer began working with DM&E business in 1983 when he worked to prevent the abandonment of C&NW branch lines that would eventually form the beginnings of DM&E. He initiated the negotiations in 1985 that led to DM&E's creation. He was promoted to Chief of Staff for Senator Pressler in 1987, a position he held until 1991 when United States President George H. W. Bush appointed Schieffer to be US Attorney for South Dakota. In 1993, Schieffer left his US Attorney post and became the legal counsel for DM&E; as legal counsel for the railroad, he oversaw the railroad's recapitalization in 1994 and the acquisition of C&NW's Colony line. He held this position until he was unanimously elected president of the railroad on November 7 1996 .
- City of Mankato, DM&E Railroad Proposal . Retrieved January 5 2005 .
- Glischinski, Steve (February 2002 ), Coming: A third Powder River Basin player, ''Trains Magazine'', p. 10-11.
- Hetland, Cara; Minnesota Public Radio ( 2005 .
- Office of Freight, Railroads & Waterways; Minnesota Department of Transportation ( 2005 .
