The South Dakota State Railroad Board has authorized the South Dakota Department of Transportation (SDDOT) to negotiate with LG Everist over the acquisition of the Sioux Valley Line, south of Canton, S.D.
This was one of nine operating proposals, from seven proposers, received during an invitation for proposal by SDDOT. The Board rejected the other operating proposals, which bid on the Britton line, Mitchell to Rapid City line, Napa to Platte line, and the Wolsey Interchange. A separate line — the Yale line — received no proposals.
“We are pleased the Board agreed to move forward with negotiations for the Sioux Valley Line and look forward to discussing the possible sale of this railroad asset with LG Everist,” South Dakota Transportation Secretary Darin Bergquist said. “Although we are disappointed with the result of proposals for the other lines, we learned a lot by going through the process and feel there will be other opportunities for future solicitations. The goal is to get these rail lines back in the hands of private entities, as long as it is the best interest of the State of South Dakota.”
SDDOT was authorized to prepare packages for soliciting proposals seeking purchase of any of the railroad lines back in June. SDDOT then prepared packets for the various lines, provided inspection tours, and offered a question and answer forum for the curious. Now that the majority of proposals have been rejected, those lines will remain in the hands of the state and their current lease/sublease holders.
These lines have been in the hands of the state since 1980 when the Milwaukee Road embargo led to bankruptcy and abandonment among those lines. In turn, the state restored and expanded the service on many of these lines, which they say has led to millions of dollars of development adjacent to them.
Negotiations are still ongoing for the Sioux Valley Line. Once complete, final action will be taken on non-operating proposals and leaseholder proposals as well.