PIERRE, S.D. — The South Dakota Railroad Board will provide $12.6 million for upgrades to rail service at the state’s largest soybeen processing plant.
The South Dakota Searchlight reports that the funds, in the form of a loan to the Davison Regional Rail Authority, will be used to build 6.2 miles of rail line, 22 industrial turnouts and two mainline turnouts for the High Plains Processing facility near Mitchell, S.D. With the project, the facility expects to process 147 railcars a week and receive unit trains once or twice a month. The project application says it will keep 30,000 long-haul trucks off the road. The board approved the request at a meeting on Wednesday, Nov. 20.
The $504 million plant, projected to open in October 2025, is expected to process 35 million bushels of soybeans annually and employ 85 people. The Davison County Commission has provided $21 million in financing through a deal the company will pay back through property taxes; the state Office of Economic Development has also provided $6.7 million in funding.
The loan, which will be guaranteed by High Plains, is the largest issued by the State Rail Trust Fund, Transportation Secretary Joel Jundt told the Searchlight. The previous high was $7 million in 2007.
Appears to be on the BNSF south of Mitchell along SD SR37 at 257th St; another dividend of the 1981 agreement between then-Governor Janklow and BN’s Dick Grayson for BN to operate the Milwaukee Road lines the State had acquired in 1980 using funds from a sales tax approved for the purpose by South Dakota voters, that as I recall included funds for track rehabilitation, which BN carried out. BNSF later purchased the lines outright. Watco’s Ringneck & Western Railroad comes into Mitchell from the west interchanging with BNSF at Mitchell.