Rail industry bullish as South Dakota track hits market

Short lines more agile than Class I railroads at serving local industries, experts say

South Dakota’s bid to sell an 80-mile rail line has not gone unnoticed, industry insiders say, and they predict strong interest in it.

That’s particularly true of a 20-mile segment that already has tracks. The stretch starts at Napa Junction near Yankton and is attached to a rail line owned by BNSF Railway. The state announced earlier this month that it was seeking a buyer for the entire 80-mile right of railway from Napa to Platte.

Absent a buyer for the entire line, the state would consider leasing the tracked 20-mile section. That section ends in Tyndall.

South Dakota looks to offload government-owned Napa railroad

“I would feel very confident in predicting that there will be robust interest from the industry,” said Chuck Baker about the tracked section.

Baker is president of the American Short Line and Regional Railroad Association.

“I would say the short line industry is very interested in growing. There are a lot of … very eager entrepreneurs who are always on the lookout for more lines to try to operate and grow and succeed, and so there will be plenty of interest in that part.”

But the 60-mile untracked section could be a harder proposition.