Dakota, Minnesota And Eastern Railroad
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The Dakota, Minnesota and Eastern Railroad is a wholly owned U.S. subsidiary of the
Canadian Pacific Kansas City Canadian Pacific Kansas City Limited, Trade name, doing business as CPKC (known as Canadian Pacific Railway Limited until 2023), is a Canadian railway holding company. Through its primary operating railroad subsidiaries, Canadian Pacific Railw ...
. Before its purchase, it was the largest
Class II railroad Railroad classes are the system by which freight railroads are designated in the United States. Railroads are assigned to Class I, II or III according to annual revenue criteria originally set by the Surface Transportation Board in 1992. With a ...
in the United States, operating across
South Dakota South Dakota (; Sioux language, Sioux: , ) is a U.S. state, state in the West North Central states, North Central region of the United States. It is also part of the Great Plains. South Dakota is named after the Dakota people, Dakota Sioux ...
and southern
Minnesota Minnesota ( ) is a U.S. state, state in the Upper Midwestern region of the United States. It is bordered by the Canadian provinces of Manitoba and Ontario to the north and east and by the U.S. states of Wisconsin to the east, Iowa to the so ...
in the
Northern Plains The Great Plains is a broad expanse of flatland in North America. The region stretches east of the Rocky Mountains, much of it covered in prairie, steppe, and grassland. They are the western part of the Interior Plains, which include the mix ...
of the
United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
. Portions of the railroad also extended into
Wyoming Wyoming ( ) is a landlocked U.S. state, state in the Mountain states, Mountain West subregion of the Western United States, Western United States. It borders Montana to the north and northwest, South Dakota and Nebraska to the east, Idaho t ...
,
Nebraska Nebraska ( ) is a landlocked U.S. state, state in the Midwestern United States, Midwestern region of the United States. It borders South Dakota to the north; Iowa to the east and Missouri to the southeast, both across the Missouri River; Ka ...
,
Iowa Iowa ( ) is a U.S. state, state in the upper Midwestern United States, Midwestern region of the United States. It borders the Mississippi River to the east and the Missouri River and Big Sioux River to the west; Wisconsin to the northeast, Ill ...
, and
Illinois Illinois ( ) is a U.S. state, state in the Midwestern United States, Midwestern United States. It borders on Lake Michigan to its northeast, the Mississippi River to its west, and the Wabash River, Wabash and Ohio River, Ohio rivers to its ...
. It interchanged with all seven U.S.
Class I railroads Railroad classes are the system by which freight railroads are designated in the United States. Railroads are assigned to Class I, II or III according to annual revenue criteria originally set by the Surface Transportation Board in 1992. With a ...
. The DM&E began operations on September 5, 1986, over trackage spun off from the
Chicago and North Western Transportation Company The Chicago and North Western was a Class I railroad in the Midwestern United States. It was also known as the "North Western". The railroad operated more than of track at the turn of the 20th century, and over of track in seven states befor ...
in South Dakota and Minnesota. The DM&E purchased the assets of
I&M Rail Link The I&M Rail Link was a railroad operating in the north central portion of the United States. The company commenced operations on April 5, 1997, acquiring lines from the Canadian Pacific Railway and Soo Line Railroad. On July 31, 2002, the Iowa ...
railroad in 2002, renaming it Iowa, Chicago and Eastern Railroad. DM&E combined its management and dispatching duties with those of ICE under the holding company Cedar American Rail Holdings. The combined system connected
Chicago Chicago is the List of municipalities in Illinois, most populous city in the U.S. state of Illinois and in the Midwestern United States. With a population of 2,746,388, as of the 2020 United States census, 2020 census, it is the List of Unite ...
through
Iowa Iowa ( ) is a U.S. state, state in the upper Midwestern United States, Midwestern region of the United States. It borders the Mississippi River to the east and the Missouri River and Big Sioux River to the west; Wisconsin to the northeast, Ill ...
to
Kansas City The Kansas City metropolitan area is a bi-state metropolitan area anchored by Kansas City, Missouri. Its 14 counties straddle the border between the U.S. states of Missouri (9 counties) and Kansas (5 counties). With and a population of more t ...
, Minneapolis-St. Paul and continued west to
Rapid City, South Dakota Rapid City is the county seat of Pennington County, South Dakota, United States. It is located on the eastern slope of the Black Hills in western South Dakota and was named after Rapid Creek (South Dakota), Rapid Creek, where the settlement deve ...
. Smaller branches extended into
Wisconsin Wisconsin ( ) is a U.S. state, state in the Great Lakes region, Great Lakes region of the Upper Midwest of the United States. It borders Minnesota to the west, Iowa to the southwest, Illinois to the south, Lake Michigan to the east, Michig ...
,
Wyoming Wyoming ( ) is a landlocked U.S. state, state in the Mountain states, Mountain West subregion of the Western United States, Western United States. It borders Montana to the north and northwest, South Dakota and Nebraska to the east, Idaho t ...
and
Nebraska Nebraska ( ) is a landlocked U.S. state, state in the Midwestern United States, Midwestern region of the United States. It borders South Dakota to the north; Iowa to the east and Missouri to the southeast, both across the Missouri River; Ka ...
. In September 2007 it was announced that Canadian Pacific Railway would acquire the DM&E upon approval by the
Surface Transportation Board The Surface Transportation Board (STB) of the United States is an independent federal agency that serves as an adjudicatory board. The board was created in 1996 following the abolition of the Interstate Commerce Commission (ICC) and absorbed regula ...
of the
US Department of Transportation The United States Department of Transportation (USDOT or DOT) is one of the executive departments of the U.S. federal government. It is headed by the secretary of transportation, who reports directly to the president of the United States a ...
. The STB announced its approval of the purchase plan on September 30, 2008. Lines west of Tracy, Minnesota were sold to
Genesee & Wyoming Genesee & Wyoming Inc. (G&W) is an American short line railroad holding company, that owns or maintains an interest in 122 railroads in the United States, Canada, Belgium, Netherlands, Poland, and the United Kingdom; and formerly in Australia. ...
in 2014 to form the
Rapid City, Pierre and Eastern Railroad Rapid City, Pierre & Eastern Railroad is a Class II freight railroad operating across South Dakota and southern Minnesota in the northern plains of the United States. Portions of the railroad also extend into Wyoming and Nebraska. It is owned and ...
.


1986–1996: Startup and initial expansion

In 1983, the
Chicago and North Western Railway The Chicago and North Western was a Railroad classes#Class I, Class I railroad in the Midwestern United States. It was also known as the "North Western". The railroad operated more than of track at the turn of the 20th century, and over of t ...
(CNW) announced plans to abandon a section of railroad between
Pierre, South Dakota Pierre ( ) is the capital city of the U.S. state of South Dakota and the county seat of Hughes County. As of the 2020 census, its population was 14,091. Pierre is the eleventh-most populous city of South Dakota, and the second-least populo ...
and Rapid City. Due to pressure from customers and Senator
Larry Pressler Larry Lee Pressler (born March 29, 1942) is an American lawyer and politician from South Dakota who served in the United States House of Representatives from 1975 to 1979, and United States Senate from 1979 to 1997, as a Republican. He remained ...
from South Dakota, a deal was reached and announced on April 24, 1986, to purchase divisions of the CNW from
Winona, Minnesota Winona ( ) is a city in and the county seat of Winona County, Minnesota, United States. Located in bluff country on the Mississippi River, its most noticeable physical landmark is Sugar Loaf (Winona, Minnesota), Sugar Loaf. The population was 2 ...
, to Rapid City, creating the Dakota, Minnesota and Eastern Railroad. This deal also included buildings,
rolling stock The term rolling stock in the rail transport industry refers to railway vehicles, including both powered and unpowered vehicles: for example, locomotives, Railroad car#Freight cars, freight and Passenger railroad car, passenger cars (or coaches) ...
and
locomotive A locomotive is a rail transport, rail vehicle that provides the motive power for a train. Traditionally, locomotives pulled trains from the front. However, Push–pull train, push–pull operation has become common, and in the pursuit for ...
s, mostly rebuilt
EMD SD9 The EMD SD9 is a model of diesel locomotive built by General Motors Electro-Motive Division between January 1954 and June 1959. An EMD 567C 16-cylinder engine generated . Externally similar to its predecessor, the SD7, the SD9 was built with ...
s, from the CNW. Many of the negotiations were handled by the office of Senator
Larry Pressler Larry Lee Pressler (born March 29, 1942) is an American lawyer and politician from South Dakota who served in the United States House of Representatives from 1975 to 1979, and United States Senate from 1979 to 1997, as a Republican. He remained ...
and his legal counsel Kevin V. Schieffer. After DM&E's successful first decade, Schieffer succeeded J. C. McIntyre as president of the railroad on November 7, 1996. 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 Crawford is a city in Dawes County, Nebraska, Dawes County, Nebraska, United States, in the Great Plains region. The population was 997 at the 2010 United States Census, 2010 census. It was incorporated in 1886 and was named for the late Captain ...
.Cedar American Rail Holdings, Inc. (2004)
Serving the Heartland of America
(
PDF Portable document format (PDF), standardized as ISO 32000, is a file format developed by Adobe Inc., Adobe in 1992 to present documents, including text formatting and images, in a manner independent of application software, computer hardware, ...
). Retrieved August 4, 2009.
That same year, the CNW ceased to exist after being merged into
Union Pacific The Union Pacific Railroad is a Class I freight-hauling railroad that operates 8,300 locomotives over routes in 23 U.S. states west of Chicago and New Orleans. Union Pacific is the second largest railroad in the United States after BNSF, ...
. From startup to the railroad's ten-year anniversary in 1996, DM&E hauled nearly 500,000 carloads of freight, which includes 700 million
bushel A bushel (abbreviation: bsh. or bu.) is an Imperial unit, imperial and United States customary units, US customary unit of volume, based upon an earlier measure of dry capacity. The old bushel was used mostly for agriculture, agricultural pr ...
s of grain. DM&E celebrated the anniversary with picnics and employee appreciation events and excursions in
Waseca, Minnesota Waseca ( ) is a city in Waseca County, Minnesota, Waseca County, Minnesota, United States. The population was 9,229 at the 2020 United States census, 2020 census. It is the county seat. Geography According to the United States Census Bureau, t ...
, and Pierre, South Dakota. Kevin V. Schieffer, whom former
United States President The president of the United States (POTUS) is the head of state and head of government of the United States. The president directs the executive branch of the federal government and is the commander-in-chief of the United States Armed For ...
George H. W. Bush George Herbert Walker BushBefore the outcome of the 2000 United States presidential election, he was usually referred to simply as "George Bush" but became more commonly known as "George H. W. Bush", "Bush Senior," "Bush 41," and even "Bush th ...
had appointed as US Attorney for South Dakota in 1991, became president of DM&E on November 7, 1996. Schieffer was no newcomer to the railroad; he first became involved with DM&E in 1983 when he worked to prevent the abandonment of the former CNW lines that eventually formed the first sections of DM&E's mainline. Maintaining the status quo on DM&E was not the fate that he had in mind for the railroad as he took the reins.Dakota, Minnesota and Eastern Railroad (November 11, 1996),
Schieffer named president and CEO of DM&E Railroad
''. Retrieved April 2, 2005.
Dakota, Minnesota and Eastern Railroad,

'. Retrieved (August 4, 2009).


1997–2006: plans for expansion into the Powder River Basin


Expansion plans

In 1997, DM&E announced plans to expand into the
Powder River Basin The Powder River Basin is a geologic structural basin in southeast Montana and northeast Wyoming, about east to west and north to south, known for its extensive coal reserves. The former hunting grounds of the Oglala Lakota, the area is very ...
(PRB) in
Wyoming Wyoming ( ) is a landlocked U.S. state, state in the Mountain states, Mountain West subregion of the Western United States, Western United States. It borders Montana to the north and northwest, South Dakota and Nebraska to the east, Idaho t ...
and provide
unit Unit may refer to: General measurement * Unit of measurement, a definite magnitude of a physical quantity, defined and adopted by convention or by law **International System of Units (SI), modern form of the metric system **English units, histo ...
coal Coal is a combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams. Coal is mostly carbon with variable amounts of other Chemical element, elements, chiefly hydrogen, sulfur, oxygen, and nitrogen. Coal i ...
train service from that area. The railroad filed an application for the expansion to the
Surface Transportation Board The Surface Transportation Board (STB) of the United States is an independent federal agency that serves as an adjudicatory board. The board was created in 1996 following the abolition of the Interstate Commerce Commission (ICC) and absorbed regula ...
(STB) on February 20, 1998.
Burlington Northern Railroad The Burlington Northern Railroad was a United States–based railroad company formed from a merger of four major U.S. railroads. Burlington Northern operated between 1970 and 1995. Its historical lineage begins in the earliest days of railroad ...
built into this area in 1979, and the Chicago and North Western Railway (CNW) also sought to access the PRB coalfields, a project accomplished by CNW's successor
Union Pacific Railroad The Union Pacific Railroad is a Railroad classes, Class I freight-hauling railroad that operates 8,300 locomotives over routes in 23 U.S. states west of Chicago and New Orleans. Union Pacific is the second largest railroad in the United Stat ...
. 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 of new track, upgrading of existing track (including all of the railroad's mainline track in Minnesota), new mainline connections at Owatonna, and
Mankato, Minnesota Mankato ( ) is a city in Blue Earth County, Minnesota, Blue Earth, Nicollet County, Minnesota, Nicollet, and Le Sueur County, Minnesota, Le Sueur counties in the U.S. state of Minnesota. It is the county seat of Blue Earth County, Minnesota. The ...
, and three new
rail yards A rail yard, railway yard, railroad yard (US) or simply yard, is a series of tracks in a rail network for storing, sorting, or loading and unloading rail vehicles and locomotives. Yards have many tracks in parallel for keeping rolling stock or ...
. The plan would be the largest new railroad construction in the United States since the completion of the Chicago, Milwaukee, St. Paul and Pacific Railroad (Milwaukee Road)'s
Pacific The Pacific Ocean is the largest and deepest of Earth's five oceanic divisions. It extends from the Arctic Ocean in the north to the Southern Ocean, or, depending on the definition, to Antarctica in the south, and is bounded by the cont ...
extension to
Seattle, Washington Seattle ( ) is the List of municipalities in Washington, most populous city in the U.S. state of Washington (state), Washington and in the Pacific Northwest region of North America. With a population of 780,995 in 2024, it is the List of Unit ...
, in 1909.


Initial approval

The STB approved the application on December 10, 1998, pending completion of an
Environmental Impact Statement An environmental impact statement (EIS), under United States environmental law, is a document required by the 1969 National Environmental Policy Act (NEPA) for certain actions "significantly affecting the quality of the human environment". An E ...
(EIS), which was released by the STB on September 27, 2000. 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
grade crossing A level crossing is an intersection where a railway line crosses a road, path, or (in rare situations) airport runway, at the same level, as opposed to the railway line or the road etc. crossing over or under using an overpass or tunnel. The t ...
s. The objectors cited concerns of the general public in safely and quickly traversing their communities as well as the ability of emergency vehicles to cross the tracks to reach emergency scenes or hospitals. The city of
Rochester, Minnesota Rochester is a city in Olmsted County, Minnesota, United States, and its county seat. It is located along rolling bluffs on the Zumbro River's south fork in Southeast Minnesota. At the 2020 United States census, 2020 census, the city had a popul ...
, filed with the STB to compel the railroad to build a bypass around the city as a condition to granting the railroad permission to build the Powder River extension. The bypass was estimated to cost around
US$ The United States dollar (Currency symbol, symbol: Dollar sign, $; ISO 4217, currency code: USD) is the official currency of the United States and International use of the U.S. dollar, several other countries. The Coinage Act of 1792 introdu ...
100 million.


Further legal actions

After a period of public comment that lasted until March 16, 2001, and further review by the STB, the final EIS was issued on November 19, 2001. In this approval, the STB agreed with DM&E that no new bypasses around cities would be required even though the cities of Rochester, Minnesota, Brookings and
Pierre, South Dakota Pierre ( ) is the capital city of the U.S. state of South Dakota and the county seat of Hughes County. As of the 2020 census, its population was 14,091. Pierre is the eleventh-most populous city of South Dakota, and the second-least populo ...
, had requested them. In 2003, a ruling by the
United States Court of Appeals for the Eighth Circuit The United States Court of Appeals for the Eighth Circuit (in case citations, 8th Cir.) is a United States federal court with appellate jurisdiction over the following United States district courts: * Eastern District of Arkansas * Western ...
ordered the STB to re-examine potential environmental issues around Rochester. The STB's preliminary report, released in early 2005, noted that no additional steps were needed by the railroad to alleviate noise and vibration caused by the projected increase in train traffic. The court upheld the STB's approval with stipulations for the new line's environmental impact, including the projected increase in the frequency of train horn soundings along the line. From the court's ruling, the STB issued a Supplemental Environmental Impact Statement which set forth mitigation strategies for the railroad. On February 15, 2006, the STB announced its final approval of the railroad's 1998 application. In April 2004,
United States Court of Appeals for the Eighth Circuit The United States Court of Appeals for the Eighth Circuit (in case citations, 8th Cir.) is a United States federal court with appellate jurisdiction over the following United States district courts: * Eastern District of Arkansas * Western ...
upheld a lower court's actions in overturning part of South Dakota legislation passed in 1999 (two years after the railroad first announced its intentions to expand) that would have impaired railroad operations and construction in the state. The decision restored the legal process by which the railroad could effectively force landowners along the proposed new route to sell their land to the railroad.


Funding

With the final EIS in place and approval from the STB, DM&E had the authority to undertake the expansion as proposed, but needed financing. On February 26, 2007, the FRA rejected a proposed $2.3 billion loan to DM&E. In announcing the decision, Administrator Joseph H. Boardman noted that the project proposal met many federal requirements for the loan but cited concerns that the railroad might not be able to handle cost overruns during construction or to repay the loan after construction was completed.


2002–2007: consolidation with IC&E

DM&E hauled nearly 60,000 carloads of freight in fiscal year 2002, serving approximately 130 customers along the railroad's mainline. Of these shipments, 53% were
grains A grain is a small, hard, dry fruit ( caryopsis) – with or without an attached hull layer – harvested for human or animal consumption. A grain crop is a grain-producing plant. The two main types of commercial grain crops are cereals and le ...
or grain products, 24% were
bentonite Bentonite ( ) is an Absorption (chemistry), absorbent swelling clay consisting mostly of montmorillonite (a type of smectite) which can either be Na-montmorillonite or Ca-montmorillonite. Na-montmorillonite has a considerably greater swelli ...
and
kaolin clay Kaolinite ( ; also called kaolin) is a clay mineral, with the chemical composition Al2 Si2 O5( OH)4. It is a layered silicate mineral, with one tetrahedral sheet of silica () linked through oxygen atoms to one octahedral sheet of alumina (). K ...
, 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
I&M Rail Link The I&M Rail Link was a railroad operating in the north central portion of the United States. The company commenced operations on April 5, 1997, acquiring lines from the Canadian Pacific Railway and Soo Line Railroad. On July 31, 2002, the Iowa ...
(IMRL) from its then-owner The Washington Companies. DM&E renamed the IMRL property to Iowa, Chicago and Eastern Railroad (IC&E) and began operations on July 30, 2002. A purchase price was not stated in the original announcement, but an article in the May 2002 ''Trains Magazine'' reported that several industry sources believed the total to be around $150 million. DM&E and IC&E combined management under the holding company Cedar American Rail Holdings. Locomotives of both railroads were given a unified paint scheme and interchanges were streamlined between the two railroads. The administration of both railroads was handled by Cedar, further streamlining processes between the two railroads. The combined DM&E–IC&E system made up the largest Class II railroad (by route-miles) in the United States; it was 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. In its first twenty years of operations, the railroad's revenues had increased more than tenfold, from $22 million in 1987 to $258 million in 2006, with $290 million projected in 2007 and $340 million for 2008. Its operating ratio (the ratio of operating expenses to revenues) declined to 70.2% in 2006 and was projected to improve further to 67.6% in 2007. Its traffic was a mix of agricultural, coal, and industrial products, and ethanol shipments were projected to exceed one billion gallons in 2008.


Acquisition by Canadian Pacific

On September 4, 2007,
Canadian Pacific The Canadian Pacific Railway () , also known simply as CPR or Canadian Pacific and formerly as CP Rail (1968–1996), is a Canadian Class I railway incorporated in 1881. The railway is owned by Canadian Pacific Kansas City, Canadian Pacific Ka ...
(CP) announced it was acquiring the DM&E from its owners,
London London is the Capital city, capital and List of urban areas in the United Kingdom, largest city of both England and the United Kingdom, with a population of in . London metropolitan area, Its wider metropolitan area is the largest in Wester ...
-based
Electra Private Equity Unbound Group, formerly Electra Private Equity, is a British-based online company specialising in clothing and specialist footwear. It was listed on the Alternative Investment Market until going into administration in July 2023. History The com ...
, for
US$ The United States dollar (Currency symbol, symbol: Dollar sign, $; ISO 4217, currency code: USD) is the official currency of the United States and International use of the U.S. dollar, several other countries. The Coinage Act of 1792 introdu ...
1.48 billion, and future payments of over $1.0 billion contingent on commencement of construction on the Powder River extension and specified volumes of coal shipments from the Powder River basin. The transaction included the ICE and other affiliated companies. The merger was an "end-to-end" consolidation; the lines had interchanged at three points, including the
Winona, Minnesota Winona ( ) is a city in and the county seat of Winona County, Minnesota, United States. Located in bluff country on the Mississippi River, its most noticeable physical landmark is Sugar Loaf (Winona, Minnesota), Sugar Loaf. The population was 2 ...
, connection between the DM&E's main line across southern Minnesota and CP's Chicago main. Kevin Schieffer, then-president of the DM&E, called CP the DM&E's "natural partner" and the transaction a "natural fit". The acquisition gave CP access to shipments of agricultural products and ethanol in addition to coal from the Wyoming coal fields. CP stated its intention to the purchase to gain access to the Powder River and ship coal to
Midwestern The Midwestern United States (also referred to as the Midwest, the Heartland or the American Midwest) is one of the four census regions defined by the United States Census Bureau. It occupies the northern central part of the United States. It ...
and Eastern utilities. The transaction required the approval of the
Surface Transportation Board The Surface Transportation Board (STB) of the United States is an independent federal agency that serves as an adjudicatory board. The board was created in 1996 following the abolition of the Interstate Commerce Commission (ICC) and absorbed regula ...
, which was expected to take a year. Securities analysts said that competing railroads for Powder River coal, the
Union Pacific The Union Pacific Railroad is a Class I freight-hauling railroad that operates 8,300 locomotives over routes in 23 U.S. states west of Chicago and New Orleans. Union Pacific is the second largest railroad in the United States after BNSF, ...
and
BNSF BNSF Railway is the largest freight railroad in the United States. One of six North American Class I railroads, BNSF has 36,000 employees, of track in 28 states, and over 8,000 locomotives. It has three transcontinental routes that provide ...
, could challenge the acquisition and delay STB approval, but were unlikely to have prevented it. Until approval, the DM&E continued to operate as a separate entity. On October 4, 2007, CP announced that it had completed the financial transactions to acquire the DM&E and its subsidiaries. Control of DM&E was placed into a voting trust to remain in effect until the STB issued its decision on the acquisition. Richard Hamlin was appointed its trustee. CP planned to integrate DM&E's operations once it received STB approval. CP expected STB approval of the purchase in October 2008. The STB announced its approval of the purchase plan on September 30, 2008, with no further conditions. CP assumed control of DM&E and IC&E on October 30, 2008, the effective date of the purchase.


Western Minnesota and South Dakota divisions to RCPE

On December 3, 2012, CP announced it was indefinitely placing on hold plans for building new trackage into the Powder River Basin. The next day the railroad announced its intention to sell the entire ex-DM&E west of Tracy, Minnesota, roughly of track. On January 2, 2014, CP announced that all track west of Tracy, Minnesota, was to be sold to
Rapid City, Pierre and Eastern Railroad Rapid City, Pierre & Eastern Railroad is a Class II freight railroad operating across South Dakota and southern Minnesota in the northern plains of the United States. Portions of the railroad also extend into Wyoming and Nebraska. It is owned and ...
, a subsidiary of
Genesee & Wyoming Genesee & Wyoming Inc. (G&W) is an American short line railroad holding company, that owns or maintains an interest in 122 railroads in the United States, Canada, Belgium, Netherlands, Poland, and the United Kingdom; and formerly in Australia. ...
, a short line operator. The sale was completed on May 30, 2014, for $210 million. Most of the Rapid City, Pierre and Eastern's employees came over from the DM&E.


Subdivisions

DM&E operated over twelve subdivisions. The divisions were located in Minnesota, South Dakota, Iowa, and Nebraska. As of 2014, three are retained by the Canadian Pacific, nine are part of the Rapid City, Pierre and Eastern.


Canadian Pacific

* Waseca SubdivisionWinona to Waseca,
Minnesota Minnesota ( ) is a U.S. state, state in the Upper Midwestern region of the United States. It is bordered by the Canadian provinces of Manitoba and Ontario to the north and east and by the U.S. states of Wisconsin to the east, Iowa to the so ...
* Hartland Subdivision
Waseca, Minnesota Waseca ( ) is a city in Waseca County, Minnesota, Waseca County, Minnesota, United States. The population was 9,229 at the 2020 United States census, 2020 census. It is the county seat. Geography According to the United States Census Bureau, t ...
to
Mason City, Iowa Mason City is a city and the county seat of Cerro Gordo County, Iowa, Cerro Gordo County, Iowa, United States. The population was 27,338 in the 2020 United States census, 2020 census. Mason City is known for its musical heritage, a significant ...
* Tracy SubdivisionWaseca to Tracy,
Minnesota Minnesota ( ) is a U.S. state, state in the Upper Midwestern region of the United States. It is bordered by the Canadian provinces of Manitoba and Ontario to the north and east and by the U.S. states of Wisconsin to the east, Iowa to the so ...


Former DM&E to RCPE

* Huron SubdivisionTracy,
Minnesota Minnesota ( ) is a U.S. state, state in the Upper Midwestern region of the United States. It is bordered by the Canadian provinces of Manitoba and Ontario to the north and east and by the U.S. states of Wisconsin to the east, Iowa to the so ...
to
Huron Huron may refer to: Native American ethnography * Huron people, who have been called Wyandotte, Wyandot, Wendat and Quendat * Huron language, an Iroquoian language * Huron-Wendat Nation, or Huron-Wendat First Nation, or Nation Huronne-Wendat * N ...
,
South Dakota South Dakota (; Sioux language, Sioux: , ) is a U.S. state, state in the West North Central states, North Central region of the United States. It is also part of the Great Plains. South Dakota is named after the Dakota people, Dakota Sioux ...
* Yale Spur Subdivision
Huron Huron may refer to: Native American ethnography * Huron people, who have been called Wyandotte, Wyandot, Wendat and Quendat * Huron language, an Iroquoian language * Huron-Wendat Nation, or Huron-Wendat First Nation, or Nation Huronne-Wendat * N ...
to Watertown,
South Dakota South Dakota (; Sioux language, Sioux: , ) is a U.S. state, state in the West North Central states, North Central region of the United States. It is also part of the Great Plains. South Dakota is named after the Dakota people, Dakota Sioux ...
* Redfield Subdivision
Aberdeen Aberdeen ( ; ; ) is a port city in North East Scotland, and is the List of towns and cities in Scotland by population, third most populous Cities of Scotland, Scottish city. Historically, Aberdeen was within the historic county of Aberdeensh ...
to Wolsey,
South Dakota South Dakota (; Sioux language, Sioux: , ) is a U.S. state, state in the West North Central states, North Central region of the United States. It is also part of the Great Plains. South Dakota is named after the Dakota people, Dakota Sioux ...
* Mansfield SubdivisionRedfield to
Mansfield Mansfield is a market town and the administrative centre of the Mansfield District in Nottinghamshire, England. It is the largest town in the wider Mansfield Urban Area and the second largest settlement in Nottinghamshire (following the city ...
,
South Dakota South Dakota (; Sioux language, Sioux: , ) is a U.S. state, state in the West North Central states, North Central region of the United States. It is also part of the Great Plains. South Dakota is named after the Dakota people, Dakota Sioux ...
* Pierre Subdivision
Huron Huron may refer to: Native American ethnography * Huron people, who have been called Wyandotte, Wyandot, Wendat and Quendat * Huron language, an Iroquoian language * Huron-Wendat Nation, or Huron-Wendat First Nation, or Nation Huronne-Wendat * N ...
to
Pierre Pierre is a masculine given name. It is a French form of the name Peter. Pierre originally meant "rock" or "stone" in French (derived from the Greek word πέτρος (''petros'') meaning "stone, rock", via Latin "petra"). It is a translation ...
,
South Dakota South Dakota (; Sioux language, Sioux: , ) is a U.S. state, state in the West North Central states, North Central region of the United States. It is also part of the Great Plains. South Dakota is named after the Dakota people, Dakota Sioux ...
* Onida Subdivision
Blunt Blunt may refer to: * Blunt (surname), a surname (and list of people with the name) * Blunt (cigar), a term used in the cigar industry to designate blunt-tipped, usually factory-rolled cigars * Blunt (cannabis), a slang term used in cannabis cult ...
to Onida,
South Dakota South Dakota (; Sioux language, Sioux: , ) is a U.S. state, state in the West North Central states, North Central region of the United States. It is also part of the Great Plains. South Dakota is named after the Dakota people, Dakota Sioux ...
* PRC Subdivision
Pierre Pierre is a masculine given name. It is a French form of the name Peter. Pierre originally meant "rock" or "stone" in French (derived from the Greek word πέτρος (''petros'') meaning "stone, rock", via Latin "petra"). It is a translation ...
to
Rapid City Rapid City is the county seat of Pennington County, South Dakota, United States. It is located on the eastern slope of the Black Hills in western South Dakota and was named after Rapid Creek, where the settlement developed. It is the second-mo ...
,
South Dakota South Dakota (; Sioux language, Sioux: , ) is a U.S. state, state in the West North Central states, North Central region of the United States. It is also part of the Great Plains. South Dakota is named after the Dakota people, Dakota Sioux ...
* Black Hills Subdivision – Colony,
Wyoming Wyoming ( ) is a landlocked U.S. state, state in the Mountain states, Mountain West subregion of the Western United States, Western United States. It borders Montana to the north and northwest, South Dakota and Nebraska to the east, Idaho t ...
to Dakota Junction,
Nebraska Nebraska ( ) is a landlocked U.S. state, state in the Midwestern United States, Midwestern region of the United States. It borders South Dakota to the north; Iowa to the east and Missouri to the southeast, both across the Missouri River; Ka ...
* Crawford SubdivisionChadron,
Nebraska Nebraska ( ) is a landlocked U.S. state, state in the Midwestern United States, Midwestern region of the United States. It borders South Dakota to the north; Iowa to the east and Missouri to the southeast, both across the Missouri River; Ka ...
to Crawford,
Nebraska Nebraska ( ) is a landlocked U.S. state, state in the Midwestern United States, Midwestern region of the United States. It borders South Dakota to the north; Iowa to the east and Missouri to the southeast, both across the Missouri River; Ka ...


Rolling stock

DM&E originally purchased used first-generation
locomotive A locomotive is a rail transport, rail vehicle that provides the motive power for a train. Traditionally, locomotives pulled trains from the front. However, Push–pull train, push–pull operation has become common, and in the pursuit for ...
s from a variety of railroads; in the early years it was more common to see a locomotive with a
Milwaukee Road The Chicago, Milwaukee, St. Paul and Pacific Railroad (CMStP&P), better known as the Milwaukee Road , was a Class I railroad that operated in the Midwestern United States, Midwest and Pacific Northwest, Northwest of the United States from 1847 ...
or
Chicago and North Western Railway The Chicago and North Western was a Railroad classes#Class I, Class I railroad in the Midwestern United States. It was also known as the "North Western". The railroad operated more than of track at the turn of the 20th century, and over of t ...
paint scheme than a DM&E paint scheme. Over the years, the locomotives were repainted, many with DM&E's paint scheme of blue with a yellow stripe along its length (it closely mirrored by that of sister railroad, IC&E). DM&E eventually assigned names to all of its locomotives when they were 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. In 1987, at the railroad's one-year anniversary, DM&E owned 39 locomotives and leased five more for a total of 44 locomotives rostered. By the railroad's tenth anniversary in 1996, DM&E owned 69 locomotives and owned or leased over 1,500
cars A car, or an automobile, is a motor vehicle with wheels. Most definitions of cars state that they run primarily on roads, seat one to eight people, have four wheels, and mainly transport people rather than cargo. There are around one billio ...
, including over 600 covered hoppers for grain and cement shipments. In 2001, the number of locomotives owned stayed about the same, while the number of cars increased to about 5,000 with 52% of them in dedicated grain service.


Company officers

DM&E has had three men serve as president of the railroad: * J. C. (Pete) 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 (1996–2008) 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 CNW 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 The president of the United States (POTUS) is the head of state and head of government of the United States. The president directs the executive branch of the federal government and is the commander-in-chief of the United States Armed For ...
George H. W. Bush George Herbert Walker BushBefore the outcome of the 2000 United States presidential election, he was usually referred to simply as "George Bush" but became more commonly known as "George H. W. Bush", "Bush Senior," "Bush 41," and even "Bush th ...
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 CNW's Colony line. He held this position until he was unanimously elected president of the railroad on November 7, 1996. Schieffer left the DM&E on October 7, 2008, shortly after the Surface Transportation Board approved the proposed purchase of the railroad by Canadian Pacific; DM&E's COO Ed Terbell and CFO Kurt Feaster were named to manage the railroad until CP completed the acquisition October 30, 2008. * Vern Graham (2008–2010) was appointed president November 5, 2008.


References

* Glischinski, Steve (February 2002), Coming: A third Powder River Basin player, ''Trains Magazine'', p. 10–11. * Hetland, Cara; Minnesota Public Radio (June 11, 2003)
DM&E builds railroad empire while it awaits court approval
Retrieved January 5, 2005.


External links

* Surface Transportation Board

{{DEFAULTSORT:Dakota Minnesota Eastern Railroad Canadian Pacific Railway subsidiaries Former regional railroads in the United States Iowa railroads Minnesota railroads Nebraska railroads South Dakota railroads Wyoming railroads Railway companies established in 1986 Spin-offs of the Chicago and North Western Transportation Company Missouri railroads Illinois railroads Wisconsin railroads Defunct North Dakota railroads 1986 establishments in Minnesota 2008 disestablishments in Minnesota