Dakota, Minnesota and Eastern Railroad
1362221
223278749
2008-07-03T11:10:00Z
Slambo
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Reverted edits by [[Special:Contributions/24.8.104.223|24.8.104.223]] ([[User talk:24.8.104.223|talk]]) to last version by Slambo
{{Infobox SG rail|
railroad_name=Dakota, Minnesota & Eastern Railroad|
logo_filename=Dmelogo.JPG|
logo_size=|
old_gauge=|
marks=DME|
locale=[[Iowa]], [[Minnesota]], [[Nebraska]], [[South Dakota]] and [[Wyoming]]; [[United States]]|
start_year=1986|
end_year=|
successor_line=|
hq_city=[[Brookings, South Dakota]] (on 22nd Avenue)
}}
[[Image:DME 4004 4000, Davis Junction, IL.jpg|thumb|300px|DME 4004 and 4000 at [[Davis Junction, Illinois]].]]
'''Dakota, Minnesota and Eastern Railroad''' ('''DM&E''') {{reporting mark|DME}} is a [[Class II railroad]] operating across [[South Dakota]] and southern [[Minnesota]] in the northern plains of the [[United States]]. Portions of the railroad also extend into [[Wyoming]], [[Nebraska]] and [[Iowa]]. DM&E and [[Iowa, Chicago and Eastern Railroad]] (IC&E) are both jointly managed by [[Cedar American Rail Holdings]], making the combined system the largest Class II network in the US.<ref name="CARH Heartland">Cedar American Rail Holdings, Inc. (2004), [http://dmerail.com/PDF/CARHMarketingPamphlet.pdf Serving the Heartland of America] ([[Portable Document Format|PDF]]). Retrieved [[January 5]] [[2005]].</ref> Although Cedar American Rail Holdings manages both railroads, in reality it is a subsidiary of Dakota Minnesota & Eastern Railroad Corporation, but [[Iowa, Chicago and Eastern Railroad]] is a subsidiary of Cedar American Rail Holdings.
DM&E began operations on [[September 5]] [[1986]] over tracks that were spun off from [[Chicago and North Western Railway]] in South Dakota and Minnesota. Much of the negotiations were handled by the office of Senator [[Larry Pressler]] and his legal counsel [[Kevin V. Schieffer]]. After a successful decade of growth for DM&E, Schieffer succeeded [[J. C. McIntyre]] as president of the railroad on [[November 7]] [[1996]].
In 1997 DM&E announced plans to build into [[Wyoming]]'s [[Powder River Basin]] to become the third railroad (after [[BNSF Railway|Burlington Northern and Santa Fe Railway]] and [[Union Pacific Railroad]]) to tap into the region's rich [[coal]] deposits. The [[Surface Transportation Board]] (STB) released the final Environmental Impact Statement (EIS) on [[November 19]] [[2001]]; with the final EIS in place and approval from the STB, the railroad has federal authority to construct the project.
DM&E purchased the assets of [[I&M Rail Link]] railroad in 2002, renaming it [[Iowa, Chicago and Eastern Railroad]] and combining its management and dispatching duties with those of DM&E under the holding company Cedar American Rail Holdings. Schieffer serves as president and CEO of Cedar as well as serving as president of DM&E. The combined system directly connects [[Chicago, Illinois|Chicago]] through [[Iowa]] to [[Kansas City, Missouri|Kansas City]], [[Minneapolis-St. Paul]] and continues as far west as [[Rapid City, South Dakota]]. Smaller branches extend into portions of [[Wisconsin]], [[Wyoming]] and [[Nebraska]].<ref>{{cite news| author=Machalaba, Daniel| publisher=Wall Street Journal| date=[[February 21]] [[2002]]| url=http://www.icerail.com/News/DM&E%20Rail%20Set%20to%20Unveil%20Midwest%20Accord.pdf| format=PDF| accessdate=2007-05-17| title=DM&E Rail Set to Unveil Midwest Accord| }}</ref>
In September 2007 it was announced that [[Canadian Pacific Railway]] (CP) would acquire the DM&E upon approval by the [[Surface Transportation Board]] of the [[US Department of Transportation]]. CP announced on [[October 4]] [[2007]], that it has completed the financial transactions for the acquisition and will integrate the railroad operations once it receives STB approval.
==1986–1996: startup and initial expansion==
In the early 1980s, [[Chicago and North Western Railway]] (CNW) announced plans to abandon a section of railroad through [[Minnesota]] and [[South Dakota]] that dates to 1859. Due to pressure from customers and Senator [[Larry Pressler]] from South Dakota, a deal was reached and announced on [[April 24]], [[1986]],<ref name="DME at 20">{{cite journal| journal=North Western Lines| title=The DM&E at 20| publisher=Chicago and North Western Railway Historical Society| year=2007| issue=1| issn=0279-5000| pages=pp 14–25 }}</ref> creating the Dakota, Minnesota and Eastern Railroad out of sections of CNW from [[Winona, Minnesota]], to [[Rapid City, South Dakota]]. This deal also included buildings, [[rolling stock]] and [[locomotive]]s, mostly rebuilt [[EMD SD9]]s, from the CNW. 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]].<ref name="CARH Heartland" />
From startup to the railroad's 10 year anniversary in 1996, DM&E hauled nearly 500,000 carloads of freight, which includes 700 million [[bushel]]s of grain. DM&E celebrated the anniversary with picnics and employee appreciation events and excursions in [[Waseca, Minnesota]], and [[Pierre, South Dakota]].<ref>Dakota, Minnesota and Eastern Railroad ([[September 13]] [[1996]]), [http://www.visi.com/~mfrahm/dme/news/10th-anniversary.html DM&E Marks 10th Anniversary]. Retrieved [[January 5]] [[2005]].</ref>
At the end of 1996, [[Kevin V. Schieffer]], whom former [[President of the United States|United States President]] [[George H. W. Bush]] had appointed as US Attorney for South Dakota in 1991, became president of DM&E on [[November 7]] [[1996]].<ref name="DME at 20" /> Schieffer was no newcomer to the railroad, however, as he had first become 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.<ref name="DME Schieffer">Dakota, Minnesota and Eastern Railroad ([[November 11]] [[1996]]), ''[http://www.visi.com/~mfrahm/dme/news/mcintyre.html Schieffer named president and CEO of DM&E Railroad]''. Retrieved [[April 2]] [[2005]].</ref><ref name="DME Overview">Dakota, Minnesota and Eastern Railroad, ''[http://dmerail.com/OVERVIEW.htm DM&E/PRB/IC&E Overview]''. Retrieved ([[April 3]] [[2005]]).</ref>
==1997–2006: expansion into the Powder River Basin==
===Expansion plans===
In 1997, DM&E announced plans to expand into the [[Powder River Basin]] (PRB) in [[Wyoming]] and start providing [[unit train|unit]] [[coal]] train service from that area. The railroad filed an application for the expansion to the [[Surface Transportation Board]] (STB) on [[February 20]] [[1998]]. [[Burlington Northern Railroad]] built into this area in 1979, and [[Chicago and North Western Railway]] (CNW) built into the area by 1984 (a project that was completed by CNW's successor [[Union Pacific Railroad]]). 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 281 [[mile]]s (452 [[kilometre|km]]) of new track, upgrading 598 miles (962 km) of existing track (including all of the railroad's track in Minnesota), new interchange connections in [[Owatonna, Minnesota|Owatonna]] and [[Mankato, Minnesota]], and three new [[classification yard|rail yards]].
This plan would be the largest new railroad construction in the [[United States]] since the completion of [[Milwaukee Road]]'s [[Pacific]] extension to [[Seattle, Washington]], in 1909.<ref name="DMEWG">Dakota, Minnesota and Eastern Railroad Working Group; Minnesota Department of Transportation and Minnesota Planning (April 2001), [http://www.dot.state.mn.us/ofrw/DM&E/dmeexpansion.pdf DM&E Expansion in Minnesota] ([[Portable Document Format|PDF]]). Retrieved [[January 5]] [[2005]].</ref>
This expansion has the potential of upgrading DM&E's status from [[Association of American Railroads|AAR]]'s [[Class II railroad|Class II]] to [[Class I railroad|Class I]].
===Initial approval and lawsuits===
The STB approved the application on [[December 10]] of that year pending completion of an [[Environmental Impact Statement]] (EIS), which was released by the STB on [[September 27]] [[2000]].
An analysis of the plan by Minnesota's [http://www.dot.state.mn.us/ofrw/DM&EWorkingGroup.html 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.<ref name="DMEWG" /> 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]]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]], filed a lawsuit to force the railroad to build a bypass around the city; the bypass was estimated to cost around US$100 million.<ref>Duff, Diane C., Alliance for Rail Competition ([[November 13]] [[1998]]), [http://www.railcompetition.org/library/reg_filings/19981113/letterDM&E.htm Letter of Support for DM&E]. Retrieved [[January 5]] [[2005]].</ref><ref>Mayo Clinic ([[July 15]] [[1998]]), [http://www.mayo.edu/comm/mcr/news_344.html DM&E Proposal]. Retrieved [[January 5]] [[2005]].</ref><ref>Galbally, Erin, Minnesota Public Radio ([[March 11]] [[2002]]), [http://news.minnesota.publicradio.org/features/200203/11_mainstreet_dme-m/towns.shtml DM&E - Towns on the line]. Retrieved [[April 15]] [[2005]].</ref>
While a bypass would remove the trains from sometimes crowded city streets, it would require purchasing land outside of the city that was privately owned. One resident summed up the problem saying that if the railroad didn't go through the city, "it would just go through someone else's place" in the country. Schieffer presented the railroad's view on this issue in a public meeting in Rochester saying:
:"I don't think we have to go out and tell someone else, `We want to take your land instead of developing our own property because somebody thinks there might be a problem in the city.' If there's a problem in the city, then there's an opportunity for you to build. But before we establish that there is a problem, it's pretty hard for me to walk up to somebody's door and say, `Hi. I'm from the railroad and we're going to take your land.' I've got to do that out West, and it's not fun."<ref>Hildebrand, John (November 2001), [http://www.findarticles.com/p/articles/mi_m1111/is_1818_303/ai_79665312/pg_1 The Appraisal - Dakota, Minnesota, and Eastern Railroad and Rochester, Minnesota, debate bypass route], ''Harper's Magazine''. Retrieved [[April 15]] [[2005]].</ref>
===Further legal actions===
After a period of public comment that lasted until [[March 16]] [[2001]], and further review by the STB, the [http://www.stb.dot.gov/EIS/DME/DME_Final_EIS.htm final EIS] was issued on [[November 19]] [[2001]]. In this final approval, the STB agreed with DM&E that no new bypasses around cities would be required even though the cities of [[Rochester, Minnesota]], [[Brookings, South Dakota|Brookings]] and [[Pierre, South Dakota]], had requested them. In 2003, a ruling by the [[United States Court of Appeals for the Eighth Circuit]] 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.<ref>(July 2005), "STB says no further conditions needed on DM&E expansion", ''Trains Magazine'', p. 20.</ref><ref>Surface Transportation Board (2005), ''[http://www.stb.dot.gov/decisions/readingroom.nsf/51d7c65c6f78e79385256541007f0580/704822c12d0f05e585256fe30054447d?OpenDocument Dakota, Minnesota & Eastern Railroad Corporation construction into the Powder River Basin]''. Retrieved [[June 10]], [[2005]].</ref>
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 prepared a Supplemental Environmental Impact Statement which sets forth mitigation strategies for the railroad. On [[February 15]] [[2006]], the [[United States]] [[Surface Transportation Board]] (STB) announced its final approval of the railroad's 1998 application. The STB's approval is expected to be finalized after a 30 day waiting period.<ref>Railway Age ([[February 16]] [[2006]]), ''[http://www.railwayage.com/breaking_news.shtml A "great day" for DM&E]''. Retrieved [[February 21]] [[2006]].</ref><ref>United States Surface Transportation Board ([[February 15]] [[2006]]), ''[http://www.stb.dot.gov/__85256593004F576F.nsf/0/D3E221C20737FEFB8525711600598FD9?OpenDocument Surface Transportation [Board<nowiki>]</nowiki> issues final decision on "Dakota, Minnesota & Eastern's" Powder River Basin expansion project]''. Retrieved [[February 21]] [[2006]].</ref>
In April 2004, DM&E was awarded the power of [[eminent domain]] in [[South Dakota]] by the [[United States Court of Appeals for the Eighth Circuit]] in [[Pierre, South Dakota]]. The ruling overturned 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. This decision restores the legal process by which the railroad can effectively force landowners along the proposed new route to sell their land to the railroad.<ref>Kafka, Joe; Associated Press ([[April 15]] [[2004]]), [http://dmerail.com/News/Eminent%20domain%20article.pdf Ruling moves railroad's plans forward] ([[Portable Document Format|PDF]]), ''Argus Leader'', Sioux Falls, South Dakota, p. 3B. Retrieved [[January 20]] [[2005]].</ref>
===Funding===
With the final EIS in place and approval from the STB, DM&E is legally able to undertake the expansion as proposed. During the final negotiations over the Fiscal Year 2006 federal transportation bill, Senator [[John Thune]], a Republican from South Dakota, tacked on language that would dramatically expand a federal loan program and help DM&E get a $2.5 billion government loan.
Senator [[Mark Dayton]], a Minnesota Democrat who has taken the side of the Mayo Clinic, an opponent of the expansion, questioned the rail company's ability to repay the loan--one of the largest federal loans ever given to a private company, he says. "It's a real perversion of the process and the public interest", says Dayton. There was additional opposition from the city of [[Dubuque, Iowa]], where an additional 5 to 9 100-car trains a day were anticipated over the current 6 trains a day.<ref>[[Dubuque, Iowa]] ''Telegraph Herald'', [[February 28]], [[2007]], p.1</ref> Kevin Schieffer, president and chief executive officer of the DM&E, says arguments against the project have no merit. "We are very solid financially", he adds. "The project has overwhelming support throughout our entire region."
The White House has tried to end the railroad loan program as an unnecessary giveaway to private companies. "In the event of a loan default, the federal government would be responsible for covering any losses, which could be significant", says a report by the [[Office of Management and Budget]].<ref>{{cite journal| url=http://www.usnews.com/usnews/news/articles/060529/29earmarks.htm?s_cid=rss:site1| title=Loading the Pork Train: A case study of why earmarks may be getting out of hand| journal=US News & World Report| author=Knight, Danielle| date=[[2006-05-21]]| accessdate=2007-05-17 }}</ref>
In August 2006, the FRA announced that it would adopt the environmental impact statements previously issued by the STB. The FRA opened a public comment period ending on [[October 10]], [[2006]], after which a decision on DM&E's application would be made within a period of 90 days. Also in August 2006, the STB approved the creation of a [[subsidiary]] company, [[Wyoming, Dakota Railroad Properties]], whose purpose is to perform the construction work and operate into the Powder River Basin. DM&E hopes the new subsidiary will ease the way toward gaining $4 billion in loan agreements and private investments toward the construction.<ref>{{cite journal| journal=Railway Age| pages=p. 20| title=FRA gets moving on DM&E loan request| month=September| year=2006| publisher=Simmons-Boardman Publishing| id=ISSN 0033-8826 }}</ref> While these processes were underway at the STB, DM&E began test shipments of coal by truck on [[September 7]] [[2006]], from Wyoming to Rapid City, South Dakota, where it was then [[transload]]ed to trains for further shipment to industries in Chicago and universities in Illinois, Michigan and Ohio.<ref name="DME at 20" />
On [[February 26]], [[2007]], the FRA rejected the $2.3 billion loan to DM&E.<ref>{{cite news| date=[[February 27]], [[2007]]| url=http://www.postbulletin.com/newsmanager/templates/localnews_story.asp?z=2&a=285765| publisher=Rochester Post-Bulletin| title=Feds reject DM&E loan| accessdate=2007-02-27 }}</ref> 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 such a hefty amount after construction is completed.<ref>{{cite press release| publisher=United States Federal Railroad Administration| date=[[2007-02-26]]| url=http://www.fra.dot.gov/us/press-releases/138| title=FRA Administrator Denies DM&E Powder River Basin Loan Application Citing Unacceptable Risk to Federal Taxpayers| accessdate=2007-02-28 }}</ref><ref>{{cite press release| publisher=L.B. Foster| date=[[2007-02-27]]| url=http://sev.prnewswire.com/construction-building/20070227/CLTU23827022007-1.html| title=FRA Rejects Dakota, Minnesota & Eastern Railroad's Loan Application| accessdate=2007-02-28 }}</ref> While the loan was not approved, the later agreement of the [[Canadian Pacific Railway]] to acquire the DM&E (discussed below) will provide funding for immediate improvements and the ability to fund the Powder River project, given the strong balance sheet, available cash, profitability, and good credit of CP Rail.<ref name = CPR/><ref name = mwatch/>
==2002–2007: consolidation with IC&E==
[[Image:DME and ICE route map.JPG|thumb|300px|left|DM&E and IC&E combined route map as of 2002.]]
DM&E hauled nearly 60,000 carloads of various freight shipments in fiscal year 2002, serving approximately 130 customers along the railroad's mainline. Of these shipments, 53% were [[cereal|grains]] or grain products, 24% were [[bentonite]] and [[kaolin clay]], 7% were [[cement]] and 5% were [[wood]] and lumber products; the remaining 11% were split among all other types of freight.<ref name="DME Overview" />
On [[February 21]] [[2002]] DM&E announced that it would purchase the railroad assets of {{convert|1700|mi|km|sing=on}} [[I&M Rail Link]] (IMRL) from its then current owners Washington Companies and [[Canadian Pacific Railway]]. DM&E renamed the IMRL property to [[Iowa, Chicago and Eastern Railroad]] (IC&E) and began operating it under that name on [[July 30]], [[2002]].<ref name="DME at 20" /> Although a purchase price was not stated in the original announcement, an article in the May 2002 ''Trains Magazine'' suggests that several industry sources believed the total to be around $150 million.<ref>Glischinski, Steve (May 2002), DM&E becomes "a significant national player", ''Trains Magazine'', p. 14.</ref>
DM&E and IC&E combined management under the holding company Cedar American Rail Holdings. [[Locomotive]]s of both railroads were given a unified paint scheme (see below) and interchanges were streamlined between the two railroads. The administration of both railroads is handled by Cedar, further streamlining processes between the two railroads. As a result, the combined DM&E/IC&E system makes up the largest Class II railroad (by route-miles) in the [[United States]]; it is also the eighth largest system of all American railroads and the only system with direct rail connections with all Class I railroads in North America.
In its first twenty years of operations, the railroad's revenues had increased more than tenfold, from [[US$]]22 million in 1987 to [[US$]]258 million in 2006, with [[US$]]290 million projected in 2007 and [[US$]]340 million for 2008.<ref name = DMEpr/><ref name = mwatch>{{cite web | last = Daniel | first = Robert | coauthors = Langlois, Shawn | title = Canadian Pacific expands into U.S. Midwest | publisher = marketwatch.com | date = 2007-09-05 | url = http://www.marketwatch.com/news/story/canadian-pacific-pay-least-148/story.aspx?guid=%7BFE31DE4B%2D840F%2D4270%2D8B7E%2D974BBD56DD96%7D&siteid=yhoof | accessdate = 2007-09-05 }}</ref> Its [[operating ratio]] (the ratio of operating expenses to revenues) declined to 70.2% in 2006 and was projected to improve further to 67.6% in 2007.<ref name = FactSheet/> Its traffic was a mix of agricultural, coal, and industrial products,<ref name = FactSheet/> and ethanol shipments were projected to exceed one billion gallons in 2008.<ref name = DMEpr/>
==Pending acquisition by CP Rail==
On [[September 4]] [[2007]], the [[Canadian Pacific Railway]] (CP Rail) announced it was acquiring the DME Railroad from its present owners, London-based Electra Private Equity, for [[US$]]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.<ref>{{cite news| last=Goldfarb| first=Jeffrey| coauthors=Reuters| title=CP Rail to Buy DM&E For At Least $1.5 Billion| publisher=nytimes.com| date=[[2007-09-05]]| url=http://www.nytimes.com/reuters/business/business-canadianpacific-dme.html| accessdate=2007-09-05| }}</ref> The transaction will include the ICE and other affiliated companies.<ref name=DMEpr>{{cite press release| title=DM&E Announces Merger With Canadian Pacific Railway| publisher=dmerail.com| date=[[2007-09-04]]| url=http://www.dmerail.com/News/DME%20Press%20Release%205Sep07Final%20(2).pdf| format=PDF| accessdate=2007-09-04| }}</ref> The merger is an "end-to-end" consolidation; the lines presently interchange at three points, including the [[Winona, Minnesota]] connection between the DM&E's main line across southern Minnesota and CP Rail's Chicago main.<ref name=CPR/><ref name=FactSheet>{{cite web| title=Investor Fact Sheet| publisher=CP Rail| date=[[2007-09-04]]| url=http://www8.cpr.ca/cms/NR/rdonlyres/ec3c6wd6efofuuztmcmcij22zo3bqpmdmli4uhfrqtwzhfedixtot5s5tkxdgarkp7cjgbzujkci5xzrpxdhtmtdj5g/Investor+Fact+Sheet+09_04_07.pdf| format=PDF| accessdate=2007-09-05| }}</ref> Kevin Schieffer, president of the DM&E, has called CP the DM&E's "natural partner" and the transaction a "natural fit".<ref name = CPR/>
The acquisition will give CP Rail access to shipments of agricultural products and ethanol in addition to coal from the Wyoming coal fields. CP has stated its intention to use this purchase to gain access to the Powder River and ship coal to midwestern and eastern utilities. The transaction is subject to approval of the [[Surface Transportation Board]], which is expected to take a year.<ref name=CPR>{{cite press release| title=Canadian Pacific announces agreement to acquire DM&E Railroad| publisher=CP Rail| date=[[2007-09-04]]| url=http://www8.cpr.ca/cms/English/Media/News/General/2007/CP+announces+agreement+to+acquire+DM+and+E+Railroad.htm| accessdate=2007-09-05| }}</ref> Securities analysts have stated that competing railroads for Powder River coal, the [[Union Pacific]] and [[BNSF]], could challenge the acquisition and delay STB approval, but are unlikely to prevent it.<ref>{{cite news| last=Greiling Keane| first=Angela| title=Union Pacific May Challenge DM&E Sale, Analyst Says (Update3)| publisher=bloomberg.com| date=[[2007-09-05]]| url=http://www.bloomberg.com/apps/news?pid=conewsstory&refer=conews&tkr=CP:US&sid=adXwG0jNZaUg| accessdate=2007-09-06| }}</ref><ref>{{cite news| last=Miller| first=Hugo| title=Canadian Pacific to Buy Dakota Rail for $1.48 Billion (Update8)| publisher=bloomberg.com| date=[[2007-09-05]]| url=http://www.bloomberg.com/apps/news?pid=conewsstory&refer=conews&tkr=CP:US&sid=atW6ewb4FbOY| accessdate=2007-09-06| }}</ref> At least until approval is received, the DM&E will continue to operate as a separate entity.<ref name = Pieters>{{cite news| last=Pieters | first=Jeffrey | title=Transition from DM&E to Canadian Pacific will be gradual | publisher=Rochester Post-Bulletin| date=[[2007-09-06]]|url=http://www.postbulletin.com/newsmanager/templates/localnews_story.asp?a=306637&z=2| accessdate=2007-09-06| }}</ref>
On [[October 4]] [[2007]], CP announced that it has completed the financial transactions to acquire the DM&E and subsidiaries. Control of DM&E has been placed into a voting trust with [[Richard Hamlin]] appointed as trustee; the trust will remain in effect until the STB issues its decision on the acquisition. CP plans to integrate DM&E's operations once it receives STB approval, which is expected within a year.<ref>{{cite press release| url=http://www8.cpr.ca/cms/English/Media/News/General/2007/CP+completes+acquisition+of+DME.htm| publisher=Canadian Pacific Railway| date=[[2007-10-04]]| accessdate=2007-10-04| title=Canadian Pacific completes acquisition of DM&E Railroad| }}</ref>
==Subdivisions==
DM&E currently operates over 12 subdivisions:
* [[DME Waseca Subdivision|Waseca Subdivision]] — [[Winona, Minnesota|Winona]] to [[Waseca, Minnesota|Waseca]], [[Minnesota]]
* [[DME Hartland Subdivision|Hartland Subdivision]] — [[Waseca, Minnesota]] to [[Mason City, Iowa]]
* [[DME Tracy Subdisivion|Tracy Subdivision]] — [[Waseca, Minnesota|Waseca]] to [[Tracy, Minnesota|Tracy]], [[Minnesota]]
* [[DME Huron Subdivision|Huron Subdivision]] — [[Tracy, Minnesota|Tracy]], [[Minnesota]] to [[Huron, South Dakota|Huron]], [[South Dakota]]
* [[DME Yale Spur Subdivision|Yale Spur Subdivision]] — [[Huron, South Dakota|Huron]] to [[Watertown, South Dakota|Watertown]], [[South Dakota]]
* [[DME Redfield Subdivision|Redfield Subdivision]] — [[Aberdeen, South Dakota|Aberdeen]] to [[Wolsey, South Dakota|Wolsey]], [[South Dakota]]
* [[DME Mansfield Subdivision|Mansfield Subdivision]] — [[Redfield, South Dakota|Redfield]] to [[Mansfield, South Dakota|Mansfield]], [[South Dakota]]
* [[DME Pierre Subdivision|Pierre Subdivision]] — [[Huron, South Dakota|Huron]] to [[Pierre, South Dakota|Pierre]], [[South Dakota]]
* [[DME Onida Subdivision|Onida Subdivision]] — [[Blunt, South Dakota|Blunt]] to [[Onida, South Dakota|Onida]], [[South Dakota]]
* [[DME PRC Subdivision|PRC Subdivision]] — [[Pierre, South Dakota|Pierre]] to [[Rapid City, South Dakota|Rapid City]], [[South Dakota]]
* [[DME Black Hills Subdivision|Black Hills Subdivision]] — [[Colony, South Dakota|Bentonite (at Colony, SD)]] to [[Rapid City, South Dakota|Rapid City]] to [[Dakota Junction, South Dakota|Dakota Junction]], [[South Dakota]]
* [[DME Crawford Subdivision|Crawford Subdivision]] — [[Chadron, Nebraska|Chadron]] to [[Crawford, Nebraska|Crawford]], [[Nebraska]]
==Rolling stock==
[[Image:DME loco.jpg|thumb|DME 4006, ''City of Balaton'', an [[EMD GP40]].]]
DM&E originally purchased used first-generation [[locomotive]]s from a variety of railroads; in the early years it was more common to see a locomotive with a [[Chicago, Milwaukee, St. Paul and Pacific Railroad|Milwaukee Road]] or [[Chicago and North Western Railway]] paint scheme than a DM&E paint scheme. Over the years, the locomotives were repainted, and many of them are now in DM&E's paint scheme (which is closely mirrored by that of sister [[Iowa, Chicago and Eastern Railroad]]) of blue with a yellow stripe along its length.
DM&E eventually assigns names to all of its locomotives when they are 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.
[[Image:LO DME 49328.jpg|thumb|right|DME 49328, a [[covered hopper]].]]
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 [[railroad car|cars]] including over 600 [[covered hopper]]s 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.<ref name="DME at 20" />
==Company officers==
DM&E has so far had two men serve as president of the railroad:
* [[J. C. McIntyre|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.<ref name="DME Schieffer" /><ref name="DME at 20" />
* [[Kevin V. Schieffer]] (1996–present) 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 C&NW 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 [[President of the United States|United States President]] [[George H. W. Bush]] 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 C&NW's Colony line. He held this position until he was unanimously elected president of the railroad on [[November 7]] [[1996]].<ref name="DME Schieffer" />
==External links==
* [http://dmerail.com DM&E official website]
* [http://www.sddot.com/fpa/railroad/carr_dme.asp South Dakota Office of Railroads: DM&E facts]
* Surface Transportation Board, [http://www.stb.dot.gov/EIS/DME/DME_Final_EIS.htm DM&E Final Environmental Impact Statement]
* [http://www.btinternet.com/~usrailfans/Railroads/DM_E/dm_e.html DM&E photo gallery]
* [http://www.visi.com/~mfrahm/dme/ Unofficial DM&E Home Page]
==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]]), [http://news.minnesota.publicradio.org/features/2003/06/11_hetlandc_dmeupdate/ DM&E builds railroad empire while it awaits court approval]. Retrieved [[January 5]] [[2005]].
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{{US class 2}}
[[Category:Dakota, Minnesota and Eastern Railroad| ]]
[[Category:Class II railroads in the United States]]
[[Category:Iowa railroads]]
[[Category:Minnesota railroads]]
[[Category:Nebraska railroads]]
[[Category:South Dakota railroads]]
[[Category:Wyoming railroads]]
[[Category:1986 establishments]]
[[Category:Companies based in South Dakota]]
[[fi:Dakota, Minnesota and Eastern Railroad]]