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Daugaard asks feds to look into DM&E obligations

PIERRE (AP) — South Dakota Gov. Dennis Daugaard is asking the federal Surface Transportation Board whether Canadian Pacific Railway has lived up to its obligations with its purchase of the Dakota, Minnesota & Eastern Railroad.

Daugaard says rail infrastructure is critical to agriculture in South Dakota, and Canadian Pacific indicated recently that it may sell the DM&E line west of Tracy, Minn. He says that would mean the new buyer of the line would have limited or no opportunity to ship cargo beyond Tracy unless the cargo is shipped using CP.

Daugaard says before DM&E was sold, the line provided shipping service to critical transportation hubs including Minneapolis, Chicago and Kansas City.

The governor filed the petition on Thursday.