Current Rail System

A total of 4,420.5 miles of railroad were constructed in South Dakota, with the last track laid in 1948. Since 1909, rail abandonment's have resulted in the loss of service on over 75% of the maximum system. The State of South Dakota, in cooperation with private railroads, was successful in restoring service on over 900 previously abandoned rail lines in the state. Currently there are 1,977 miles of operating rail lines in South Dakota.

As a result of the Milwaukee Road embargo in 1980, South Dakota was confronted with the loss of over fifty percent of its total operating rail mileage. The State analyzed each line individually and identified the essential rail lines vital to the economy of South Dakota. Some of the embargoed essential lines were purchased by other railroads and service was restored. The remaining essential lines for which a private solution could not be found were purchased by the State.

There are four state-owned local option lines currently in operation. The D & I Railroad operates on two local option lines between Canton and Elk Point (49.7 miles) and between Beresford and Hawarden, IA (16.9 miles). Dakota Southern Railway operates 190 miles between Mitchell and Kadoka. The DMVW operates between Aberdeen and Geneseo Jct., ND. Each of these operations has been important to the communities they serve, allowing for the continuation of rail service where Class I railroads found it unprofitable.

There are two state-owned rail segments currently in non-operating status. The 82.4 mile Napa Jct. to Platte line had operations restored intermittently between 1985 and 1989 but has not been operated since. The 98.5 mile Kadoka to Rapid City line has not had rail operations restored since 1980. The rail, ties, and bridges was salvaged beginning in 1996, however, the State retained the right-of-way of the line for future railroad development.

The third category of state-owned rail line was the South Dakota Main Line which ran 480 miles from Ortonville, MN through Aberdeen to Terry, MT. The ownership of the Main Line was transferred to the Burlington Northern in August 1991. The most significant justification for a continued state-owned railroad system in critical areas of South Dakota is a function of economics. Agriculture, which is South Dakota's principal industry, needs an efficient bulk carrier system to transport crop production to markets. It is more cost-effective to move farm commodities long distances by railroad than by truck. With reliable rail service, South Dakota's producers are afforded access for their products to international markets at the lowest possible farm to market cost.