DM&E's Powder River Basin Plan

[Anonymous]

DM&E's plan to extend themselves into Wyoming's Powder River Basin was discussed in one of the 2006 Trains Magazines. The following are my views. I think that the railroad's plan is basically a goodone and will lift the railroad into possibly being a Class I. The plan, however, isn't perfect and my personal opinions and views are stated next. What about motive power? Currently all or most of their locomotives are conventional locomotives from the early days. Will they have enough motive power to get the coal moving and still have enough to perform their regular duties? Or will they have to buy new locomotives, something a railroad must take very seriously, with locomotives costing 2 million a copy. Will they have enough employees to keep the coal moving up and out of Wyoming? Or will they have some new hires? Will they have enough cars to perform their regular duties and keep the coal moving throught their system. Or will it be time to invest in new cars. These questions are up to the Dakota, Minnesota and Eastern, but if they go for it, we may have another Class I to add to the seven.

[satrap]

Buddy, there is no way on God's green earth that this ever gets done.  Do you actually think for a microsecond that NIMBY, UP, and BNSF will put up with some underfunded upstart called DM and E.  It makes for some interesting, intermittent news, but this one is DOA.

[coborn35]

Also, DME doesnt have any customers lined up yet!

[KCSfan]

Wednesday, January 31, 2007 (Washington, DC) The Federal Railroad Administration (FRA) today announced it has determined that the proposed Dakota, Minnesota, & Eastern (DM&E) Powder River Basin project has met the requirements of the federal environmental review process, and outlined new measures the railroad must take to improve safety and air quality if the pending DM&E $2.3 billion Railroad Rehabilitation and Improvement Financing (RRIF) loan application is approved.

The release of FRA's final environmental review, known as a Record of Decision (ROD), marks the start of a 90-day clock within which the agency must approve or disapprove the DM&E loan application. The final decision will be made after thorough consideration of an extensive and independent evaluation of the railroad, the proposed project, and the RRIF loan application.

The above was downloaded from the FRA web site. Looks like the questions about the PRB expansion will be answered on or before the end of April. The DM&E people are not fools and are almost certain to have had discussions with potential utility customers before now. The utilities are already upset about the rates they are having to pay for coal transported by the BNSF and UP. If, and that's still a big IF, they get the loan and as the the work progresses the DM&E will be posting their rates and if, another big IF, they are competetive then the utility customers will be signing on. Once those contracts are signed the lenders will be lined up to give the DM&E any additional credit they need to buy new locomotives and rolling stock. I personally think it's going to happen.

Mark