DM&E

staging

yard set for

Shag Road

100 employees expected at

the site during first year

of operation

By RON LARSEN

Journal Staff Writer

BROOKINGS, S.D.--Dakota, Minnesota and Eastern railroad officials confirmed Monday that the crew-change, marshaling and staging features that were planned for near Mankato will be incorporated into the staging yard on the east edge of New Ulm.

DM&E Vice President Lynn Anderson said the railroad's plans to place the upgraded marshaling and staging railroad yard on the west edge of Mankato were changed because of "environmental concerns."

The company in July, 1999, had issued a news release announcing placement of the railroad yard near Mankato.

Anderson said the New Ulm staging yard will remain approximately 5 miles in length and occupy about 19 acres, with seven or eight sidings.

While "minor" repairs will be made in the New Ulm yard, the site will not have a roundhouse, Anderson said, because the railroad's principal repair base will be located at Huron, S.D. There will be a small, "office-type" building for handling paperwork.

Anderson said DM&E will have about 100 employees at the site during the first full year of operation; however, he refused to speculate as to how many more employees might be added in future years "because that depends upon business."

The majority of employees will be train crews who may either be based at New Ulm or may be "In transit," because of limitations on the length of time an individual crew can work. Anderson said he couldn't speculate on the ratio of New Ulm-based crews to those who are in transit.

There will be some mechanical jobs, including a track repair crew, and other unspecified positions at the New Ulm yard, in addition to the train crews, he said, but the number of on-site employees would be limited.

"Of course, the fact that employees are based at New Ulm doesn't mean they will live there, but New Ulm is a good town and should get its share," Anderson noted.

The New Ulm yard will double as a freight yard where crews would change, as well as a pick-up yard in which there would be local train service.

In addition, there would be a drop-off for empty cars to be picked up for loading and for inter-changing cars with the Union Pacific, Anderson said.

On Nov. 19, the national Surface Transportation Board released its voluminous environmental impact statement which gave approval, with conditions, for going ahead with the railroad's $1.4 billion rail expansion project. The board's final approval of the project is expected before the end of the year.

Anderson said the railroad's timetable calls for three years of construction on the project which will open a third rail route from Wyoming's low-sulphur coal fields to the Midwest's heartland.

"Next year will be devoted to design and completion of paperwork," Anderson explained. "Then, it will be full-blown construction in 2003, 2004 and completion of the project in late 2005."

So, that means residents along Shag Road can expect to see the railroad in full operation, with the possibility of up to 35 trains a day, in 2006.

"It's a positive to create new jobs in the New Ulm area," Brian Tohal, industrial development coordinator for New Ulm Economic Development Corporation, "despite that for folks in the Shag Road area increased noise and inconvenience will be issues. It's my hope that the railroad will work with them to mitigate those issues."