02 Statewide Economic Development Infrastructure Plan

CHALLENGES Capacity, Constraints, and Impacting Factors The largest capacity and constraint weakness and threat is the continued need to upgrade many lower-density railway segments to 286,000-lb gross weight carloads. The largest constraints are west river. Increasing allowable speeds to those desired by the rail industry will make rail more competitive and efficient. Operational capacity can, at times, be a problem on mainlines, in rail yards, or at interchanges with other railroads. Class II and Class III railroads continue to see capital project backlogs due to deferred maintenance and capital projects by previous owners, and therefore utilize public funds in addition to their private funds. Existing Challenges Weight, speed, and operational constraints increase costs and/or reduce cost effectiveness, making South Dakota’s rail-served industries less competitive.

Chapter 2: South Dakota’s Existing Rail System South Dakota State Rail Plan Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grant for the South Dakota Freight Capacity Expansion Project. This grant, combined with funding from the State and Rapid City, Pierre & Eastern Railroad, Inc. (RCP&E), supports improvements to the corridor between Fort Pierre and Rapid City to accommodate modern 286,000-lb. rail cars. Chapter 2: South Dakota’s Existing Rail System South Dakota State Rail Plan Future Challenges A lack of investment in South Dakota's rail system will result in lost opportunities and/or a reduction from current service, which will have downward effects on the industries it serves. With farm products accounting for over half of all outbound commodities by weight, the effect is felt all the way through to individual farmers. Additionally, individual manufacturers and other industries can be hindered by shipment delays, resulting in reduced revenue and other competitive challenges. The U.S. Department of Transportation awarded a

Figure 3: Maximum Allowable Gross Weight per Carload by Segment (2022)

Figure 3: Maximum Allowable Gross Weight per Carload by Segment (2022)

Figure 7.2 Maximum Allowable Gross Weight

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Infrastructure First Project

Rail | 81

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