DM&E head explains expansion plans

Schieffer says staging yard won't be as loud

as opponents fear

By CHRIS VETTER

Journal Staff Writer

NEW ULM -- The proposed Shag Road rail staging yard will not be as loud as opponents suggest and will not cause roads to be closed for significant lengths of time as trains pass through New Ulm, according to Kevin Schieffer, president of Dakota, Minnesota & Eastern railroad.

Schieffer spoke to New Ulm city officials for about 80 minutes Thursday afternoon. After the closed meeting, he discussed the proposed rail upgrade project.

Shag Road residents have expressed concern that a staging yard in their neighborhood will lead to clanging noises throughout the day and night as train cars are separated, then reconnected, to form new trains.

However, Schieffer said that less than 10 percent of trains going through New Ulm would be split into new trains at the rail yard. The remaining 90 percent will simply move through town as they head to their final destination, Schieffer added.

"There's a lot of perceptions out there as opposed to reality," Schieffer said. "There are not going to be any heavy repair facilities. There won't be a lot of changing of cars. Its primary purpose is to change crews."

The two-person crews will disembark the train, and a new team will take over. Federal laws limit the length of time a train employee can drive per day.

DM&E is seeking federal approval to upgrade its existing 600-mile train line that stretches from Wall, S.D., to Winona. The company also plans to add 275 miles of track west into Wyoming, tapping into coal supplies in the Powder River Basin. The entire project carries a $1.4 billion price tag.

If the rail is rebuilt, Schieffer said trains would head through rural areas at 40-49 mph and through New Ulm at 30 mph, much faster than current speeds in town, which top out at 8 mph.

Council President Dan Beranek attended the meeting with Schieffer. Beranek said he was largely pleased with what he heard, especially comments about train speeds and noise.

"The trains will be smaller and faster," Beranek said. "It shouldn't create a problem at crossings."

Councilor Joel Albrecht also sat in on the discussion. He gained a better understanding about how the staging yard would operate.

"I thought we had a very productive meeting," Albrecht said. "It was an open dialogue. This was more productive than trying to do everything through an attorney."

Albrecht was particularly pleased with the news that few trains would be split up to create new trains. Although there would still be noise from whistles and diesel trains, the clanging noise of changing cars should be less than previously believed, Albrecht said.

"That's a whole lot different than a marshaling yard or a repair yard," Albrecht said. "That gives it a completely different connotation."

Schieffer rejected a city proposal that would move the staging yard west of town between New Ulm and Essig.

"This is already farther west than we want it to be," Schieffer said. "This isn't our preferred site."

DM&E originally planned to place the staging yard west of Mankato, near Minneopa State Park. However, the federal Surface Transportation Board prefers the Shag Road site, saying the Mankato location is too close to the state park.

Schieffer explained that the United Pacific rail line, which moves north-south through Mankato, will occasionally bring trains to the New Ulm staging yard. Thus, if the staging yard were on the west side of New Ulm, United Pacific trains would also be going through town, increasing train traffic further.

"New Ulm does not want a train interchange for Union Pacific on the west side," Schieffer said. "It would be bad for New Ulm."

The city and the railroad agreed to work together to preserve the depot station on South Valley Street, said Assistant City Manager Tom MacAulay. The two sides will work on a partnership agreement in the immediate future, he said.

"That building is just going down hill as far as the shape it's in," he said.

MacAulay said Schieffer indicated he wants to meet with Shag Road residents to discuss the planned yard.

City Manager Dick Salvati agreed that DM&E officials were open and that the discussion was quite informational.

"I think we've explored these issues as much as we could," Salvati said.

There is a public comment period for residents to write to the Surface Transportation Board about the project, reacting both positively and negatively to the plans. Neither Albrecht nor Beranek think the council will submit an official city position, as Mankato did in December.

"From what I've heard, I'm satisfied," Beranek said.

Once the March 6 comment deadline passes, the federal board will review the letters. The board is not expected to issue a response permitting or rejecting the proposed expansion immediately. Salvati said the earliest the response could come is July, but it could be delayed until March 2002.

Much of the discussion about train expansion has focused on moving coal from Wyoming to power plants on the East Coast. But Schieffer said farmers will benefit from the improved lines. The new tracks in Wyoming will connect with a train line that heads to the West Coast, he said.

"We get grain to the West Coast in 10 days," Schieffer said. "After the project is done, it will be there in 10-15 hours."

The West Coast line will open new markets to farmers, and could bring up agriculture prices by 10 cents per bushel, he contends.

Without the rail upgrades, Schieffer doubts that the company could exist.

"The longterm viability of the railroad requires the rebuilding," he said. "Every train that goes across leaves broken rail behind it. It's old, it's brittle, it's fatigued."

Also, the closure of the railroad would significantly increase truck traffic in New Ulm, Schieffer said. For every train car not on the track, four semi-trailers will be on the road, he said.

Rick Daugherty, Public Affairs officer for DM&E, previously said that the outdoor staging yard could bring up to 300 ongoing, permanent jobs to the area once the coal trains meet their capacity of 100 million tons a year.

If the STB approves the upgrades this year, work on the line would take place through 2003, Daugherty said. The rail company believes it will reach full capacity for coal movement by 2010. Until then, the rail yard would create 100-200 full-time jobs.

The train company plans to keep the rail open throughout the rebuilding process.

The railroad and federal board still must determine whether the train will go through downtown Mankato on the existing tracks or if a southern bypass will curl around that town in the country.

People who want to comment on the proposed rail expansion can send letters to: Office of the Secretary, Case Control Unit, STB Finance Docket No. 33407, Surface Transportation Board, 1925 K Street NW, Washington D.C., 20423.