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SDDOT / Railroads / Office Information / About

In 1980, the Legislature turned railroad oversight duties over to the Department of Transportation. This was done in conjunction with the purchase of the state core line. There are many misconceptions about what authority the state has over railroad operators in the state. The regulation of the railroad operators falls under the jurisdiction of federal commerce laws. By law, the state has no authority to regulate carriers. The state's role is to manage our state owned property, work toward enhancing the safety of the public with regard to crossings, and monitoring and administration of federal pass through funds.

The responsibilities of the Office of Railroads include managing all real and personal property acquired by the state for railroad purposes. This includes leasing of property, utility installation, track rehabilitation, industrial track expansion and construction. The Office also prepares annually a planning document which outlines rail improvements that the state intends to complete for each year.

Property Management

When the Legislature authorized the purchase of the state core line, the management of the property was turned over to the Department of Transportation. The right-of-way for the state owned track runs from 100-200 feet across, and segments are often times leased to landowners, elevators, farmers, etc. The Office of Railroads manages approximately 600 property and 400 utility leases. Revenue from the lease agreements is deposited into the Railroad Operating fund per state law. These funds are used to cover operations and expenses of the office, and of the state owned property including weed spraying, mowing and fencing.

Utility Installations

Any time a utility company wishes to cross or parallel a state core line railroad track in South Dakota, a request must be made to the Office of Railroads. The Office looks at several factors to determine whether the permit will be granted. If you are a utility company wishing to make a formal request, use the electronic form request at this link: Utility Form Request

Track Rehabilitation

Many things impact whether or not a line will be rehabilitated in the state. In order to stay competitive, many railroad companies are buying higher speed locomotives and larger containers in order to get more product to market faster. It is important for South Dakota's farmers and our economy to stay competitive. Most of South Dakota's rail line and bridges are very old and cannot handle the speeds and the weight. Since the Local Rail Freight Assistance Program has not been re-authorized by Congress, any projects that are proposed must be paid for by the railroad company operating on the line. The state does not have funding itself to participate in costs of rehabilitation.

Industrial Track Expansion

Because of increasing competition in transporting goods to market quickly, there are many efforts in the state to get the grain loaded on cars quicker, as well as increase the number of cars that one locomotive will pull. Recently the Burlington Northern announced that it will be giving better rates to grain loading facilities which can load 108 car trains in a short time span. Most grain facilities in South Dakota do not have spur trackage long enough to accomplish this. Many elevators currently have plans in the works, or at least on the drawing board so that they can give farmers the best prices possible. The State of South Dakota has participated in helping some elevators with track expansion through small loans from the Railroad Trust Fund, which are approved through the South Dakota Railroad Board.

Maintenance of State Owned Property

Per state law, the Office of Railroads is required to maintain the railroad property owned by the state. This includes weed control and fencing. On trackage which is leased to a railroad company, the state requires the lessee to perform the weed control functions. On other trackage, the state contracts with cities and counties for mowing and weed control. Fencing issues are handled on a case by case basis by the Office of Railroads.

Regulatory Functions

All regulatory functions are performed by the Federal Rail Administration. This includes inspections of trackage, safety requirements, etc.

Private Right of Entry Permits

Any instance where construction of a road will cross a state core line, a permit must be approved.


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