News Item: Bid Process on Dakota Southern Rail Line Rehab begins
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Posted by Lucy
Wednesday March 23, 2011

Bid Process on Dakota Southern Rail Line Rehab begins 

A  Federal funding authorizations signed last Friday secures the $16 million Tiger Grant for rail line reconstruction between Mitchell and Chamberlain.
Bruce Lindhom of the South Daktoa Department of Transportation, stated that bidding process for steel and ties has begun.  “We’ll begin advertising today (Monday) and will let the bids on April 11, 2011,” said Lindholm. 
The materials needed for the reconstruction will be let in two different bids.  All the steel, including rail, plates, and spikes are in one bid and another is for ties only.  A third bid for a contractor will be let at a later date.
Lindholm stated that there is a great deal of interest in the reconstruction of the rail line currently operated by Dakota Southern Railway.  “People in the grain business around the state are talking about this project,” said Lindholm.  “There’s been a lot of chatter.”
It was recently reported in the Mitchell Daily Republic that a group of investors were considering the construction of a  new $25 million grain load out facility to be built on the line approximately six miles east of Kimball. 
The completion of the  rehab project could help DSR secure a deal with the Keystone Pipeline to haul construction material as far west as Reliance.  Stan Patterson of DSR stated at the recent MRC meeting that Keystone is interested in using a site near Reliance for unloading pipe from the train onto semi trucks for transportation to the construction site.
Lindholm acknowledged that the Keystone Project is currently on hold for more environmental studies. 
“That’s good for us.  We’ll have time to get the line finished 
South Dakota State Railroad Board,  the Mitchell to Rapid City Regional Railroad Authority (MRC) and DSR will also provide funding for the rehabilitation project estimated to cost nearly $20 million.  The South Dakota DOT will oversee the project.
Lindholm stated at the last MRC meeting that the completion date of the project is December 31, 2011 but he expects it could be done within three months of the start of work.

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