|
The DM&E Rail Revitalization Project
By Scott VanderWal As farmers went about their work in South Dakota this week, a federal agency in Washington was issuing an analysis of the DM&E plan to upgrade and extend its rail lines. The agency was the Federal Railroad Administration – and its conclusion confirmed that the DM&E revitalization project was the right step for South Dakota and our farm economy. Working the land and the rail project are not unconnected, as the railroad administration’s review pointed out. It said the DM&E plan would lead to “reduced transit times, more reliable service and improved safety.” The Administration added: “Increased rail system safety, reliability and efficiency could also produce rural economic benefits such as increased farm income, increased economic development, and less burden on the rural road network.” It’s such a common sense conclusion, but it’s good that the agency was so succinct. For anyone who has been climbing on and off a combine this week, as I have, the analysis was right on target. Any discussion of the DM&E project must start with a bit of history. To the detriment of farmers, the farm economy and rural America, rail service has become slower, less responsive and less reliable. South Dakota is Exhibit No. 1 in the rail capacity crisis. After deferring maintenance for years, for example, the then-owners of the CNW railroad sought to abandon it. CNW essentially ran it into the ground, and then tried to abandon. In 1986 the DM&E saved it from becoming scrapped. The years of neglect, however, left South Dakota with a weakened link in the transportation chain. No community would prosper if its residents were forced to travel on 80-year-old roads that had not been maintained. The same is true of railroads. DM&E’s revitalization project is the right remedy to that neglect. First of all, the upgrades will make the railroad safer. That’s not just the opinion of this producer. That’s the judgment of the federal Surface Transportation Board, which was upheld by the 8th U.S. Circuit Court of Appeals. It only makes sense, because the DM&E will be replacing 80-year-old track and signals with technologically advanced rails and equipment. The project will give the region’s farmers a boost. Revitalization will improve the backbone of the agriculture infrastructure, helping increase the production of ethanol and bringing millions of dollars and jobs to the state. And, according to the U.S. Department of Agriculture, more efficient transportation could add up to 20 cents per bushel to the price of corn and other grains. Both are important steps to strengthening the state’s rural farm economy. The project also carries significant energy benefits. The two railroads that currently serve the Powder River Basis have publicly acknowledged that they cannot meet consumer demand for the basin’s low-sulfur coal. Expansion of the DM&E will help meet consumer demand for electricity at lower prices. Because of all these benefits, the DM&E has broad support. Supporters include such diverse interests and views as Sen. John Thune, Sen. Tim Johnson, Governor Mike Rounds, Rep. Stephanie Herseth, SD Farm Bureau, SD Farmers Union, and nearly every commodity organization, the energy industry and economic development organizations across the state. DM&E plans to invest roughly $3.6 billion, supplemented by a $2.4 billion federal loan that it will repay in full with interest. Such loans are not new. Parts of the Burlington Northern Santa Fe and Union Pacific coal-hauling lines were built with loans exactly like the one that DM&E is seeking. The DM&E upgrade is not only necessary, but is also an exciting opportunity. With it, we can improve the backbone of the farm economy’s infrastructure, through a safer and more efficient railroad. It is the right plan and it is realistic. It is long past time to make it happen. Scott VanderWal, a farmer from Volga, is president of the South Dakota Farm Bureau Federation. Scott VanderWal
|
|
|