[1][2] Operating on former Chicago and Northwestern (CNW) trackage,[1] it was formed to ship Sioux Quartzite and other materials such as sand and gravel from a large quarry in Sioux Falls, South Dakota, for Sweetman Construction Company, which uses the railroad primarily to ship materials from the quarry it operates to a concrete plant nearby.

[1] Over time, the Ellis and Eastern has shipped more diverse products such as lumber, chemicals, machinery, scrapmetals, and grain to other customers.

[2] The Minnesota Southern Railway had declined all attempts by the EE to purchase it, so it sat disputed between the two competitors.

[2] The railroad was awarded nearly $14.5 million in a Consolidated Rail Infrastructure and Safety Improvements (CRISI) grant from the U.S. Department of Transportation in March 2020.

The grant dollars will be combined with a $19.4 million commitment from Ellis & Eastern to make improvements to the shortline railroad that stretches from Sioux Falls, South Dakota to near the unincorporated community of Org, southwest of Worthington.