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Canadian Pacific halts coal-expansion project

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Canadian Pacific Railway Ltd., whose U.S. headquarters is in downtown Minneapolis, has dropped its controversial plan to build a 260-mile track extension to Wyoming's coal-rich Powder River Basin and running thousands of additional trains through southern Minnesota, the Rochester Post Bulletin reports. The Mayo Clinic fought especially hard to keep the increased coal traffic away from its downtown medical campus in Rochester.

The railroad cites reduced demand for coal in the U.S. as the main reason for sidelining the project started by Dakota, Minnesota & Eastern Railroad Corp. about 15 years ago, according to the Mankato Free Press.

Click here, to read the company news release.

The Star Tribune notes more power plants have converted from coal to natural gas and rail shipments of coal down 10.5 percent in 2012, according to the Association of American Railroads.

Canadian Pacific acquired South Dakota-based DM&E in 2007 for $1.48 billion.

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