South Dakota DOT solicits proposals for purchase or lease of Napa-Platte rail line

The South Dakota Department of Transportation (SDDOT) is calling for proposals from qualified parties interested in purchasing or leasing the state-owned Napa Junction to Platte rail line for common carrier freight-rail service.

The Napa-Platte line is one of the last segments under state ownership. In September 2025, the South Dakota State Railroad Board authorized the SDDOT to begin a competitive process for returning the line to private operation, Transportation Secretary Joel Jundt said in a press release.

The 81-mile line extends from Napa Junction to Platte. Previously, the Napa–to-Tyndall segment was leased to Dakota Southern Railway Co., whose lease was terminated in July. The Tyndall–to-Platte segment is rail-banked for potential future use.

SDDOT officials are inviting purchase proposals for the entire Napa-Platte line or lease proposals for the Napa-Tyndall segment. Proposals should also support economic growth and development in South Dakota; sustain or expand freight-rail service; encourage new rail customers and certain improvements; ensure safety and compliance with federal rail regulations; and where possible, return state-owned rail assets to private ownership for long-term operational success.

Proposals are due Dec. 19; the State Railroad Board will review proposals in open session on Jan. 21, 2026. The invitation for proposals and related materials can be viewed here.