I understand an ethanol plant would go a long way toward making this idea viable. However, the discussion of the possibilities for grain shipments left me confused. This line connects to the BNSF at Yankton, and you must use the BNSF to get to Elk Point. From there, it is the D&I to Sioux City.
So to get to those five (I think the real number is two) Class I's in Sioux City, you need track rights from the BNSF. Why would the BNSF give you track rights so you can connect with the UP?
If the traffic is there, any line can be brought back from the dead, even abandoned lines. But that is a BIG "if." I think the question you are asking is if the traffic will support a line that depends virtually 100% on originating grain (I am not familiar with the specifics of the line you are asking about and I am not commenting on it specifically). That question depends on how much money it will require to restore the track to viability. If one is inserting 1,000 ties per mile at $100 each installed, which is probably not unlikely (and even less than what might be needed) that's $10 million before one even gets to rail, bridges, ballast, and god forbid any active grade-crossing warning devices. A really run down line can easily soak up $600,000 to $1 million per mile to rebuild good enough for light-density traffic not including bridges. If you want 286K and unit trains the cost is more like $1.6-2.2 million/mile, not including bridges. Grain even drawn from a large basin may not generate enough carloadings to pay for the capital expense plus the operating costs.
However the state might conclude otherwise, both to reduce highway maintenance costs and because some people in some states like railroad lines from an emotional perspective uncoupled from any sort of economic reality. Now on the other hand if you told me someone wanted to put 5 or 6 millon gross tons per year over it, give me a call.
Edit -- just saw Dale's post. $20 million for 54.5 miles; I wonder where that number came from? Anyone know what kind of rail is out there, and if there are bridges, how big and how many?
Sikak
A $20 million rebuild can't be paid for by hauling grain. In this case, a new ethanol plant may make it work.
http://hosted.ap.org/dynamic/stories/S/SD_RAIL_LINE_SDOL-?SITE=SDSIO&SECTION=HOME&TEMPLATE=DEFAULT
Thanks to Chris / CopCarSS for my avatar.
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