MDDE incorporated in the State of Maryland on June 20, 1977 as a closely held, small railroad company. At that time, the states of Maryland and Delaware were paying subsidies to Conrail for branch lines, still owned by Penn Central, serving rural communities. The Maryland Department of Transportation selected MDDE to operate three of the rural branch lines in August 1977. These included the current Northern and Seaford Lines, and the discontinued branch between Clayton, Delaware and Easton, Maryland. Maryland purchased the two branches served by the MDDE Northern and Seaford Lines. Snow Hill Shippers Association purchased the branch currently known as the Snow Hill Line in 1982 and hired MDDE to serve as operator. MDDE became owner of the branch in 2000. MDDE was awarded a five-year contract by Delaware in 1994 to operate a branch between Ellendale, Delaware and Milton, Delaware, and another branch between Georgetown, Delaware and Lewes, Delaware. These branches were part of the former Queen Anne's Railroad, which began providing rail service between Queenstown, Maryland and Lewes, Delaware in 1894, and extended its track to Love Point, Maryland in 1902. MDDE did not seek renewal of the Delaware contract and operation of the two lines was returned to the previous contractor, Delaware Coast Line Railroad, in 1999. The 5-year operating contract with the Maryland Department of Transportation for the North Line and Seaford Line became effective in 2008. Two 5-year renewal options allow the contract to be extended until 2023. After years of using part of the Snow Hill branch for tank car storage, active rail service was restored in June 2019 to the Tysons Foods facility.
The Snow Hill Line intersects the Delmarva Central Railroad in Frankford, Delaware and continues south towards Snow Hill, Maryland.
MDDE route maps
Major Customers
Hurlock Express
MDDE provides an engine for the "Hurlock Express" at the annual Hurlock Fall Festival. Train rides during the one-day event, held on the first Saturday of October, run from the town of Hurlock's historic train station to Federalsburg, along the MDDE's Seaford Line. The town of Hurlock owns the train station and two passenger cars. In 1892 Hurlock became the intersection of the Delaware Railroad and the Baltimore, Chesapeake and Atlantic Railway, which are no longer operating. The MDDE's Seaford Line is the only rail line now serving the town. Except for the Hurlock Fall Festival, MDDE does not provide passenger service.
Engine roster
Note: No. 2630 was wrecked when the crew ran through a switch, breaking it, then came back over the switch. The front set of trucks followed one track and the rear set followed the other, resulting in the locomotive rolling over. It was scrapped in June 2018. No. 2632, which sat for years out of service a short distance south of the enginehouse in Selbyville, was scrapped in the fall of 2019. The remaining CF7, No. 2628, is kept inside the Selbyville enginehouse when not in use.