Rail freight transportation company, Canadian Pacific has announced that the company has now assumed control over the the Dakota, Minnesota & Eastern Railroad (DM&E) Corporation and the company’s subsidiaries, having gained approval from the United States Surface Transportation Board in late September.

The DM&E Railroad is the largest regional railroad in the United States and is the only class two railroad that connects and interchanges traffic all seven Class one railroads, connecting with Canadian Pacific at Minneapolis, Winona in Minnesota as well as Chicago.

Headquartered in Sioux Falls, South Dakota, the DM&E boasts 2,500 miles of track, including approximately 500 miles of trackage rights, and rolling stock fleet that includes 7,200 rail cars and 150 locomotives.  The railroad is present in the states of Illinois, Iowa, Minnesota, Missouri, Nebraska, South Dakota, Wisconsin and Wyoming, eight in total, as well as having access to to Chicago, Minneapolis/St. Paul, Kansas City and key ports

In stark contrast to another acquisition effort, that of Canadian National and the Elgin, Joliet & Eastern Railway Company, Canadian Pacific has received an overall positive reaction to the company’s acquisition of the DM&E. 

United States Senator John Thune, Republican of South Dakota, in welcoming the acquisition noted that “the additional markets that will be available to rail shippers through Canadian Pacific’s extensive rail network will create jobs, increase the market for South Dakota agricultural goods and value-added products, and improve our capability to transport products produced in South Dakota."

Congresswoman Stephanie Herseth Sandlin, Democrat from South Dakota also welcomed the acquisition, adding a sense of bipartisanship to the mix amid a polarizing US Presidential campaign.  “It’s clear that South Dakota and the entire upper great plains are in need of increased shipping infrastructure,” said the Congresswoman, “and rail can be a cost effective and efficient means to ship a range of agricultural products.”

Accepting the goodwill emanating from politicians as well as other state and city representatives and officials, Canadian Pacific’s President and Chief Executive Officer Fred Green said that “This is a significant day for Canadian Pacific, DM&E, IC&E and Cedar American Rail Holdings as it marks our acquisition of the largest and one of the most successful regional railroads in North America.”

Source: CNW Group and Canadian Pacific Railway

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