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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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