South Dakota Rail: SDDOT Seeks Proposals for Freight Service

SDDOT seeks proposals for the Napa Junction to Platte rail line, aiming to revive common carrier freight service. Offers for the 81-mile segment are now open.

South Dakota Rail: SDDOT Seeks Proposals for Freight Service
October 7, 2025 11:54 pm
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Introduction

The South Dakota Department of Transportation (SDDOT) is seeking proposals for the purchase or lease of the state-owned Napa Junction to Platte rail line, an 81-mile segment, to re-establish common carrier freight-rail service. The South Dakota State Railroad Board authorized the SDDOT to begin this competitive process in September 2025.

Main Content

Background

The Napa-Platte line represents one of the remaining state-owned rail segments. The decision to solicit proposals follows the termination of a lease agreement with Dakota Southern Railway Co. for the Napa–to-Tyndall segment in July.

Line Details

The rail line spans 81 miles, connecting Napa Junction and Platte. The Tyndall–to-Platte section is currently rail-banked for potential future utilization.

Proposal Requirements

The SDDOT is accepting purchase proposals for the entire Napa-Platte line and lease proposals specifically for the Napa-Tyndall segment. Proposals must address several key aspects.

Key Considerations

Proposals must demonstrate support for economic growth and development in South Dakota. They must also ensure the continuation or expansion of freight-rail service. Furthermore, proposals should encourage the addition of new rail customers and include provisions for specific improvements. Safety and adherence to federal rail regulations are also essential. Finally, the SDDOT aims to return state-owned rail assets to private ownership where feasible to ensure long-term operational success.

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Conclusion

The South Dakota Department of Transportation is soliciting proposals for the Napa Junction to Platte rail line, with the goal of reinstating common carrier freight service. Proposals are being accepted for the entire line or a segment. The SDDOT aims to promote economic growth, expand freight-rail service, and facilitate the return of rail assets to private operation.

Company Summary

Dakota Southern Railway Co.: Previously leased the Napa–to-Tyndall segment of the Napa-Platte line.

South Dakota Department of Transportation (SDDOT): The state agency responsible for managing the Napa Junction to Platte rail line and issuing the call for proposals.

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