Genesee & Wyoming (G&W), the operator of short line and regional freight railroads, has announced that its subsidiary, Rapid City, Pierre & Eastern Railroad (RCP&E) has acquired the west end of the Dakota, Minnesota & Eastern (DM&E) rail line from Canadian Pacific for about $210m.
RCP&E also paid an additional $7.5m for the purchase of certain inventory, equipment and vehicles.
With the new acquisition, the RCP&E will commence freight service on the 670-mile rail line on 1 June 2014. The new railroad currently has 177 employees.
RCP&E general manger Todd Bjornstad said that the company will be creating a fleet of nearly 50 locomotives and 3,000 railcars dedicated to RCP&E customers, supplemented by additional railcars from our connecting Class I railroads, to ensure we have the power and cars to meet customer needs.
"Through the combination of these resources, our intent is to increase the level of service provided to customers, which will increase the flow of traffic over the railroad and, ultimately, improve customer satisfaction," Bjornstad added.