BNSF to acquire Core railroad line for $41.64 million
BNSF Railway Co. said it has reached a settlement agreement with Gov. Mike Rounds to acquire South Dakota state-owned Core railroad line for $41.64 million.
The 368-mile Core line runs from Aberdeen to Mitchell, Mitchell to Canton, Canton to Sioux Falls and Mitchell to Sioux City.
The state of South Dakota purchased the Core line from the Milwaukee Road in 1980. In 1981, the state and BNSF entered into an agreement in which BNSF would provide rail service on behalf of the state on the Core line for five years. In 1986, a new agreement was reached in which BNSF agreed to continue operations and the state agreed to allow BNSF to purchase the Core line at a time of their choosing.
“BNSF is pleased to have resolved with the state a win-win outcome that enhances rail service options for shippers in South Dakota and supports our continued investment in the Core line for the future,” said Peter J. Rickershauser, BNSF vice president, network development.
In addition to the purchase of the Core line, BNSF has agreed to allow certain access rights to the Core line by smaller, South Dakota based railroads.
The sales agreement is subject to approval by the Surface Transportation Board.