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Short Line/Regional

STB Issues Supplemental Draft Environmental Impact Statement for Southwest Gulf Line

WASHINGTON – The Surface Transportation Board’s Section of Environmental Analysis (SEA) has issued the Supplemental Draft Environmental Impact Statement (SDEIS) for the Southwest Gulf Railroad Company’s construction and operation of a roughly seven mile line in Medina County, Texas. SEA previously issued a Draft Environmental Impact Statement (DEIS) for public review and comment in this proceeding in 2004. The DEIS assessed four potential rail routes for Southwest Gulf’s proposed rail line to connect a proposed Vulcan Construction Materials, LP limestone quarry and the Del Rio subdivision of the Union Pacific Railroad Company (UP), near Dunlay, Texas, as well as the

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FRA

Citizens Against Government Waste Names Sen. John Thune Porker of the Month

WASHINGTON — Citizens Against Government Waste (CAGW) has named Sen. John Thune, R-S.D., the Porker of the Month for helping a railroad company secure a record $2.3 billion federal loan guarantee. The Dakota, Minnesota and Eastern Railroad (DM&E) is seeking the largest federal loan to a private company in American history — a $2.3 billion in tax money from to finance a major rail expansion project through the Midwest. The loan guarantee from the Federal Railroad Administration (FRA) would allow the DM&E to expand and improve a rail line that is used primarily to transport coal from Wyoming to Minnesota.

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FRA

Iowa Northern Railway Receives $25.5 million RRIF Loan

WASHINGTON — The Iowa Northern Railway (IANR), a short line freight carrier located in northeastern Iowa, is receiving a $25.5 million loan from the Federal Railroad Administration (FRA). The funds will be used to: upgrade mainline track from Linn to Waterloo and from Cedar Falls to Manly; construct new sidings at Palo, Shell Rock, and Nora Springs; and rehabilitate rail yards in Waterloo and Manly. These improvements will allow the railroad to accommodate heavier railcars and move freight more quickly, safely, and efficiently, according to the FRA. Agricultural products account for most of the cargo carried by the IANR, but

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Short Line/Regional

Brookings Residents Reject DM&E Agreement at Polls

BROOKINGS, S.D. – Fifty-six percent of Brookings voters rejected the city’s Community Partnership Agreement (CPA) with the Dakota, Minnesota & Eastern (DM&E) Railroad. The results show that many Brookings residents were dissatisfied with the railroad’s mitigation proposal, some pundits say. DM&E has requested a $2.3 billion federal subsidy to upgrade and expand the private railroad’s tracks to haul large volumes of coal from Wyoming’s Powder River Basin to distribution points in the East. If approved, the project could result in as many as 34 coal trains passing through Brookings each day at speeds of up to 50 miles per hour.

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Short Line/Regional

Opponents of $2.3 Billion DM&E Loan Voice Concern as Public Comment Period Draws to a Close

WASHINGTON – As public comments came to a close, a distinguished group of national leaders has voiced their opposition to the loan and called on the Federal Railroad Administration (FRA) to deny a Dakota, Minnesota and Eastern Railroad (DM&E) proposal. “The American taxpayer is being railroaded again,” George Landrith, president of Frontiers of Freedom Institute, a public policy foundation dedicated to promoting free market principles, said in a statement during the comment period. “The DM&E railroad has a history of failing to live up to its financial obligations. American taxpayers deserve to know who the money is going to and

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Short Line/Regional

Rochester Coalition: Largest Federal Loan in U.S. History Relying on Faulty Environmental Impact Statement

ROCHESTER, Minn. – The Federal Railroad Administration (FRA) erred in adopting the environmental impact statement (EIS) prepared by the Surface Transportation Board (STB) concerning the Dakota, Minnesota & Eastern Railroad’s (DM&E) coal train expansion proposal, the Rochester Coalition said in comments filed today. “The FRA is relying on a dated, insufficient EIS that the Department of Transportation’s General Counsel’s Office has indicated is problematic,” said Steve Ryan, of Manatt, Phelps & Phillips LLP and legal counsel for the Rochester Coalition. “When considering granting a $2.3 billion taxpayer-funded loan – the largest federal loan to a private company in U.S. history

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Short Line/Regional

Surface Transportation Board Approves DM&E Request

SIOUX FALLS, S.D. – The U.S. Surface Transportation Board (STB) has approved DM&E’s application to utilize a separate subsidiary to build and operate a new 280-mile rail line into the Powder River Basin. “We’re pleased with this latest victory,” said Kevin V. Schieffer, DM&E president and CEO. “It’s another step closer to our goal of creating the best, safest, most efficient and most modern railroad in the United States.” The STB’s decision, released late yesterday, will help expand the market for financing the $6 billion project. “We have to attract a lot of private financing regardless of the outcome of

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Short Line/Regional

Minnesotans Overwhelmingly Support DM&E Railroad Plan to Upgrade Track in Southern Minnesota

NEW ULM, Minn. – By a 7-to-1 margin, Minnesotans favor Dakota, Minnesota & Eastern Railroad’s plan to upgrade its existing tracks in southern Minnesota, according to a new statewide survey of Minnesota voters about the railroad improvement plan. Asked why they favor it, supporters most often said that it would improve rail safety. The statewide survey found that 74 percent favor the DM&E plan, 10.4 percent oppose it and 15.7 percent did not know or refused to answer. Minnesotans voiced an equally strong conviction that the project would benefit farmers. The survey found that 71 percent believed the DM&E upgrade

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Short Line/Regional

Appalachian and Ohio Rail Workers Approve First Contract as BMWED Teamsters

WASHINGTON – Track maintenance employees of the Appalachian and Ohio Railroad have unanimously approved their first contract as members of the Brotherhood of Maintenance of Way Employees Division (BMWED) of the Teamsters Union. This is the first union contract on the short line railroad since being sold by Watco Companies. “This contract will provide an immediate increase in wages,” said Randall Brassell, General Chairman of the BMWED’s Eastern Federation. “The contract language standardizes pay rates and gives employees access to a 401(k) plan. This is a good first contract.” The contract ratification vote took place Aug. 3 in Buckhannon, W.Va.

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BNSF

STB Releases Fall Peak Service Plans

WASHINGTON — The Surface Transportation Board has released letters from Class I railroads outlining their “peak season” service plans. In June, Chairman W. Douglas Buttrey sent letters to the chief executive officers of the seven largest railroads and to the American Short Line and Regional Railroad Association (ASLRRA), asking the railroads to inform the STB of their plans to ascertain the demand for, and to prepare for, the provision of peak-season service; their performance goals for the remainder of 2006 and their plans for achieving those goals; and their plans to communicate their service goals and plans with customers. In