DM&E's Schieffer leaves the company
(AP) - The trustee for the Canadian Pacific Railway Corp.'s acquisition of the Dakota, Minnesota and Eastern Railroad says DM&E President and CEO Kevin Schieffer has left the company to pursue other opportunities.
Trustee Richard Hamlin, a private consultant who built a 30-year career as a transportation executive, said Schieffer's departure is effective immediately.
Officials say Ed Terbell, the chief operating officer, and Kurt Feaster, the chief financial officer, will manage the day-to-day operations while the Sioux Falls-based DM&E remains in trust.
On Sept. 30, the Canadian Pacific received U.S. Surface Transportation Board approval to acquire control of the DM&E and its subsidiaries. Hamlin says the Canadian Pacific expects to assume control of the DM&E Oct. 30.
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When the STB approval was announced, a Canadian Pacific spokesman the company had not yet decided if it will continue with the DM&E's plans to build new track into Wyoming coal fields and ship coal east across South Dakota and southern Minnesota.
The deal calls for Canadian Pacific to pay $1.48 billion in cash for the DM&E, with future payments of up to $1 billion depending on progress on the expansion project.
One of the people Schieffer clashed with was former Gov. Bill Janklow, who has done legal work for the Mayo Clinic and represents landowners along the route.
"I wish him well," Janklow said of Schieffer. "He was a worthy adversary. He did phenomenal things for that railroad. He accomplished their missions. He and I didn't get along, we weren't personal friends, but that's irrelevant. He did what that railroad wanted done and he did it how they wanted it done."
Janklow said he doesn't see Schieffer's departure as having any effect on anything, including the land condemnation process for new track in western South Dakota.
"My complaint with the condemnation is the process. That's our complaint. It's the way it's done, it's how people are treated that's important."
Supporters of the project have praised Schieffer for his efforts to get the project built, and they said he has been sensitive to the views of those along the line.
Project supporter Sen. John Thune, R-S.D., said it is "probably not a big surprise" that Schieffer left the DM&E. Schieffer, who was a top aide of former Sen. Larry Pressler, was a strong backer of Thune.
Thune told KCCR Radio in Pierre that it probably was only natural for the Canadian Pacific to have its own staff in leadership positions. Schieffer may have decided to leave on his own, Thune added.
The existing track runs through Rochester, Minn., where civic leaders have long expressed safety concerns about the coal train project.
Dennis Hanson, president of the Rochester City Council, said CP's purchase of DM&E affords the opportunity for a fresh start on discussing safety issues.
"I think when Mr. Schieffer was on board, there was a lot like oil and water trying to mix and it just didn't work," Hanson said in an interview. "I think hopefully with this new ownership that we can start fresh and both meet at the table and discuss things in a civil manner and hopefully get some great things accomplished."
Chris Gade, a spokesman for Mayo Clinic in Rochester, echoed the safety concerns.
"From our perspective as Mayo Clinic regardless of who has the responsibility for leadership of the organization, we really feel the highest priority has to be placed on safety, safety for patients, the staff and the community of Rochester," Gade said.
"We look forward to, as we've said, the opportunity to work with a new set of leadership for the organization. We feel it's appropriate that they're transitioning to new leadership."
Hanson said CP representatives are expected to visit Rochester and other communities on the line.
`We're just waiting for that to happen and sit down and have some face-to-face negotiations," he said.
"I think right now everything is on the table. Safety is our No. 1 issue. Those are things we'll express to whoever comes to the table and see if we can get off to a little better start than we did last time with Mr. Schieffer."
Schieffer could not be reached for comment.
After the sale was announced a year ago, officials from Rochester and the Mayo Clinic filed documents with the STB, saying more and faster trains carrying hazardous materials on unsafe tracks would be an environmental and safety risk.
They argued the project could lead to dangerous spills of hazardous materials along the line, which is only a few blocks from the clinic.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
