The Dakota Northern Railroad was created in January 2006 after the
BNSF Railway decided to lease approximately of
branch line trackage to
KBN Incorporated and
Independent Locomotive Service for an initial 10-year period. The track leased to the Dakota Northern Railroad consists of an approximate segment of the Glasston Subdivision between
Grafton, North Dakota and
Glasston, North Dakota as well as the approximate Walhalla Subdivision between
Grafton, North Dakota and
Walhalla, North Dakota. The piece of the Glasston Subdivision leased to the Dakota Northern Railroad is part of a segment of track that was once owned by the
Great Northern Railway and extended from
Grand Forks, North Dakota to
Gretna, Manitoba. The
Burlington Northern Railroad (a successor to the Great Northern Railway) abandoned the track to its current terminus of Glasston in 1993. The Walhalla Subdivision was also once owned by the
Great Northern Railway. The line extended from
Grafton, North Dakota to
Morden, Manitoba in the early 20th century, but was abandoned to the current terminus of Walhalla in 1936. In 2009, Dakota Northern filed to discontinue service on 18.1 miles of the Glasston Subdivision, from a point about 2.7 miles north of Grafton to Glasston. In its filing, DN stated that the line was embargoed on March 18, 2009, because of an unsafe bridge just south of St. Thomas. It also claimed that the line is unprofitable and that traffic has been low consisting of 55 carloads in 2006, 72 carloads in 2007, 44 carloads in 2008, and 3 carloads in 2009 (January 1, 2009 to March 18, 2009). Approval to discontinue service on the line was received from the Surface Transportation Board on January 22, 2010. The line north of the embargoed bridge has been pulled up and the remaining approximate 3 miles is used for railcar storage. ==Locomotive and Freight Car Fleet==