PIERRE, S.D. -- The next step for Dakota, Minnesota & Eastern Railroad is to line up financing as it proceeds with its expansion project into Wyoming, a wire service report.

The DM&E, which received approval from the federal Surface Transportation Board, will need at least $1.5 billion.

Kevin Schieffer, DM&E president, says he can't discuss specifics but he is confident the money will be there. He said outside money will be required to fund the project.

Gov. Bill Janklow brought up the issue last week at his weekly news conference when he speculated the DM&E would be sold once it gets all the needed permits and acquisitions.

Schieffer said the process will require partnering, but that doesn't necessarily mean the railroad will be sold.

The project includes 280 miles of new track to link coal fields of Wyoming's Powder River Basin with markets in the east.

In addition, the railroad's existing line would be fixed up so several dozen trains could run daily across South Dakota and southern Minnesota, carrying coal for power plants.