Not sure if this should be prefixed with CNW, or DME, or moved to CP, but one way or the other, history is repeating in South Dakota. Looks like maybe we'll see a reincarnation of DME. Or maybe just Dakota and Eastern this time, wonder if CP will throw in the Winona-Tracy leg as well to sweeten the deal? Probably not with their significant stake in Minnesota but anything's possible... Sound familiar? Not intended to be a rant, just an interesting observation of history repeating itself! http://www.cpr.ca/en/news-and-media/news/Pages/CP-expression-of-interest-for-DME.aspx
I wonder what the final price tag will be for 700 miles of bad track? It might be something G&W would be interested in...
Yea some of that track has seen better days for sure. Didn't they do some upgrades out there in the early 2000's? They have done quite a bit of work in MN over the years, I seem to recall hearing some of the worst parts got taken care of out that way too. Then again, that was nearly 20 years ago, stuff that was good then might not be anymore now, and if stuff that was new then hasn't been maintained well it could all be crap again.
I have a sad feeling this will not play out very well. I'm betting CP has cherry picked a few profitable miles and wants to dump the rest. Which is not a good move, as there will be little left to tempt a buyer. And the coal line idea is pretty much gone. What would a potential suitor actually get? Or should I say a rail scrapper....
Nah, some short line will spring from it I'm sure. There's still alot of wheat and stuff out there that has to be shipped somehow, and there's ethanol and things too. It doesnt generate the revenue CP gets elsewhere, but for a lean short line it could still work I think. Plus if CP keeps east of Tracy theyd still handle most of the traffic from west end on its way to the Twin Cities or the Mississippi River for export.
It was not exactly that healthy before being acquired. Now you chop off some of the east end, shortening hauls, thus reducing revenues. Lean on seasonal shippers, an ethanol industry which is up and down. How is the physical plant? It was in need of some large investment before, I doubt CP has infused that much to bring it up. Faced with the need to invest a huge amount, potential suitors may be few. If any. I have some legitimate doubts...
I think your right . I think the BN will operate the West end. I think nearly everyone has given up on the soft shale roadbed West of Huron. It was a big reason the CNW called it quits. Its impossible to keep track on the shale. West of Huron the DM&E connects to the BN in 4 places. Randy
Since we're talking about the DME, it's interesting to think I actually considered applying to them for a job once, back when they were considering building the coal line. Dieter Zakas
I wonder what would have happened? Haven't heard anything since the acquisition, but I am thinking a few folks probably lost out in the shuffle.
I think some are underestimating the amount of demand out that way, between the row crops (wheat alone is probably enough), the supporting fertilizer and equipment, and the clay there's some large customers with deep pockets that would be difficult to impossible to ship their product by truck. A new shuttle loading facility just went up outside of Miller, SD too. For someone to commit to a project like that they would have had extensive conversations with the railroad and must have received some kind of indication that the line will remain open, at least from Miller east for export and possibly to the west for export as well. It will be interesting to see what becomes of this, but I doubt very much if any of the line will be abandoned.
So what news about the east end? If CP hangs on to Minnesota, that shortens hauls and reduces revenues. But it would remove the Rochester headache.
You are right that there is a lot of business potential on the line. The problem lies in the current track condition. Most of the line is 10mph track. To make it worth adding shuttle loaders along the line would take track upgrading and possibly CTC signalling. CP is dumping it because the money they would have to invest doesn't equate to enough profit on the back side.
