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South Dakota Department of Transportation (SDDOT) officials announced yesterday they've finalized the sale of the Mitchell to Rapid City (MRC) Rail Line to Ringneck and Western Railroad LLC for $13 million.
The South Dakota State Railroad Board recently authorized the department to complete the sale. The purchase price will be paid to the department, with $5 million paid at closing and the remaining balance paid in equal installments of $1.6 million over the next five years, SDDOT officials said in a news release.
Watco Cos. LLC will operate the Ringneck and Western, which will take over the MRC rail operations upon closing. Shippers will receive a $25 reduction in the current $50 surcharge per loaded rail car. After the purchase, the railroad has committed to spend at least $2 million on track maintenance per year over the next 10 years, SDDOT officials said.
Ringneck and Western has also agreed to work with the SDDOT to complete construction of a siding near Kimball.