SDDOT Issues IFP for Sale or Lease of Napa-Platte Rail Line - Railway Age

SDDOT Issues IFP for Sale or Lease of Napa-Platte Rail Line - Railway Age

The South Dakota Department of Transportation (SDDOT) on Oct. 6 announced the release of an Invitation for Proposals (IFP) seeking qualified parties interested in purchasing or leasing the State-owned Napa Junction to Platte rail line for common carrier freight rail operations.

The Napa-Platte rail line totals approximately 81 miles, extending from Napa Junction (milepost 0.0) to Platte (milepost 80.8). The Napa–Tyndall segment (milepost 0.0 to 20.9) was previously leased to Dakota Southern Railway Company, whose lease was terminated in July 2025. The Tyndall–Platte segment (milepost 20.9 to 80.8) is currently railbanked for potential future use.

Since acquiring key lines following the 1980 Milwaukee Road embargo, the State of South Dakota has worked to preserve essential rail service vital to the State’s economy, SDDOT said.

“Through strategic public ownership and private partnerships, most State-owned lines have been restored or returned to private operation. The Napa-Platte rail line represents one of the final segments under South Dakota ownership. In September 2025, the South Dakota State Railroad Board authorized the SDDOT to begin a competitive process for returning the Napa-Platte rail line to private operation,” stated Transportation Secretary Joel Jundt. “The State’s objective is to return the Napa-Platte rail line to private operation in a way that enhances freight opportunities, supports local industries, and promotes long-term economic growth.”

The SDDOT invites proposals for the following:

• Purchase proposals for the entire Napa-Platte rail line (milepost 0.0–80.8); and/or
• Lease proposals for the Napa–Tyndall segment (milepost 0.0–20.9).

 The IFP seeks proposals that will:

• “Support economic growth and development across South Dakota.
• “Sustain or expand freight rail service to communities and industries.
• “Encourage new rail customer creation and service improvements.
• “Ensure safety, resiliency, and compliance with federal rail regulations.
• “Where possible, return State-owned rail assets to private ownership for long-term operational success.”

 Key Dates and Deadlines:

• Monday, Oct. 6, 2025:  IFP is published on SDDOT website.
• Wednesday, Oct. 15, 2025:  Line tour schedule announced by addendum.
• Wednesday, Dec. 3, 2025, 10 a.m. CT:  Deadline for proposer questions via Q&A forum.
• Friday, Dec. 19, 2025, 10 a.m. CT:  Proposal submission deadline.
• Wednesday, Jan. 21, 2026: Railroad Board will review proposals in open session.

Following review of proposal submissions, the State Railroad Board may enter negotiations with a preferred proposer, according to SDDOT. Any final sale or lease will require approval by the South Dakota State Railroad Board and consent of the Governor. The full IFP, attachments, addenda, and question-and-answer forum are available on the SDDOT website at Bid Letting. The information is located in the section entitled, “Lettings Currently Advertised for Bids.”

All proposals must be submitted electronically through the South Dakota Electronic Bidding System (SDEBS) in pdf format. Questions regarding the electronic bidding process may be directed to Becky Hoffman, SDDOT Bid Letting Engineer at 605-773-8386 or via email at Becky.Hoffman@state.sd.us. All other inquiries must be submitted through the online Q&A forum linked on the SDDOT website.