South Dakota's Department of Transportation in the US has been given the go-ahead to upgrade three state-owned rail lines.
The regional rail authorities leasing the lines from the state would be eligible for funding and would be repaid through a $20-per-car-surcharge on freight hauled on the rail lines, Progressive Railroading has reported.
The three state-owned lines that will receive funds are the Canton-to-Elk Point line, the 76-mile Britton line and the 15-mile Huron-to-Yale line.
The initiative is aimed at improving safety and reducing shipping costs.
The Canton-to-Elk Point Line will receive $7.6m to install 14 miles of welded rail, operated by D&I Railroad and leased to Sioux Valley Regional Railroad Authority.
The 76-mile Britton line between Aberdeen and Geneseo Junction will receive $2m for track improvement, operated by Missouri Valley & Western Railroad and leased to Marshall County Regional Railroad Authority.