The Milwaukee Road was in the throes of its final bankruptcy; barley shippers in the Sisseton area sought to ensure that service would continue.
[3] Dakota Rail expanded into neighboring Minnesota in 1985 after the Burlington Northern Railroad announced plans to abandon its Hutchinson Subdivision (more commonly known as the Hutch Spur), a 44-mile (71 km) line that branches off the Wayzata Subdivision in Wayzata and ends in Hutchinson, Minnesota.
Local efforts to save the line were led by Ancher Nelsen, a former U.S. Representative.
Dakota Rail leased the line from the Burlington for $100/year, with an option to buy for $5 million after five years.
[5] RailAmerica, a short-line railroad holding company, acquired Dakota Rail in 1995 for $1.5 million.