PIERRE, S.D. — A state legislative committee has endorsed funding for a project to help rebuild the Sisseton-Milbank Railroad, moving the appropriation bill forward, KELO-TV reports.
The Senate Transportation committee unanimously approved the bill that would provide $6.25 million from the state’s general fund to help rebuild the railroad from its current state, which limits trains to 10 mph, to 25-mph operation. That money would be needed to help match a requested federal grant of about $25 million. The legislation, SB-16, now goes to the legislature’s Joint Committee on Appropriations.
The 37-mile Sisseton-Milbank, owned by the Twin Cities & Western, serves a grain elevator in Sisseton, but is limited to 263,000-pound cars rather than the current 286,000-pound standard because of the condition of its right-of-way [see “South Dakota seeks funds to upgrade deteriorating short line,” Trains News Wire, Dec. 13, 2022]. The improvements would allow the Sisseton elevator to add a 110-car loading facility, and the Sisseton Wahpeton Sioux Tribe would start using the line to transport propane if the route is upgraded, according to railroad president Mark Wagner.
Why isn’t private investment involved?
Watco bought the Dakota Southern last year from the State of South Dakota for $13 million.
This is the second short line in South Dakota to get investment in the past year.