On Monday, the South Dakota Department of Transportation (SDDOT) announced an Invitation for Proposals (IFP) for those interested in purchasing or leasing the state-owned Napa Junction to Platte rail line for freight rail operations.
Since acquiring key lines following the 1980 Milwaukee Road embargo, the state has worked to preserve essential rail service, officials said. However now the state intends to divest itself of the rail line.
“Through strategic public ownership and private partnerships, most State-owned lines have been restored or returned to private operation. 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,” SDDOT Transportation Secretary Joel Jundt said. “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 state said the Napa-Platte rail line is approximately 81 miles long and extends from Napa Junction to Platte. The 21-mile-long Napa-Tyndall segment was previously leased to Dakota Southern Railway Company, whose lease was terminated in July 2025. The approximately 60-mile-long Tyndall-Platte segment is currently railbanked for potential future use, the state said.
SDDOT said it is looking for purchase proposals for the entire rail line and/or lease proposals for the Napa-Tyndall segment. The IFP seeks proposals supporting economic growth and development across the state, expanding or sustaining freight rail service, encouraging new rail customer creation, ensuring safety, resiliency and compliance with federal rail regulations and returning state-owned rail assets to private ownership where possible.
Proposals are due by Dec. 19.
“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,” Jundt said.