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Thu June 14, 2007
DM&E Railroad Reportedly Courts Investors
Laramie, WY – The Dakota, Minnesota and Eastern Railroad's parent company is listening to offers for all or part of the company in an effort to finance a six billion-dollar expansion project derailed by a denied federal loan. That's according to a report by Trains Magazine. The magazine says investment bankers representing Cedar American Rail Holdings approached potential suitors and invited ten to hear presentations by CEO Kevin Schieffer during the past two weeks. The article sways Canadian National Railway and Canadian Pacific Railway are among the finalists. Schieffer would not confirm or deny the report but says the company is looking into several options.
The DM&E project would rebuild 600 miles of track across South Dakota and Minnesota and add 260 miles of track to reach Wyoming's Powder River Basin. It would haul low-sulfur coal eastward to power plants.