RSSRisky Railroad Loan Derailed
CAGW* | December 30, 2007
Citizens Against Government Waste (CAGW) stirred a media and public firestorm that ultimately derailed a risky $2.3 billion loan for the Dakota, Minnesota, and Eastern Railroad (DM&E). Instigated by Sen. John Thune (R-S.D.), a former six-figure lobbyist for DM&E, this record federal loan would have required an annual service payment exceeding DM&E’s current yearly revenue. The Federal Railroad Administration’s (FRA) rejection of the loan “marks a huge victory in the battle against wasteful spending,” CAGW President Tom Schatz declared. “The DM&E loan coasted under the radar until activists expressed outrage over its financial, economic, and safety risks. The FRA heard the public’s concerns and made the right decision” that the loan posed an “unacceptably high risk” to federal taxpayers. Read more about the FRA’s denial of the DM&E loan.
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The DME/ICE Railway is in the process of being acquired by the Canadian Pacific. After the acquisition it will be a Class 1 Railroad. Just as the BNSF, CSX, Norfolk Southern, Union Pacific, Canadian National and Kansas City Southern. Then it won’t need a special interest loan. But the UP and BNSF pretty much own the Powder River Coal Fields in Wyoming.