RailAmerica Acquires Alabama Rail Line from BNSF 2003-06-02 -- RailAmerica, Inc. and BNSF today, June 2, announced that BNSF has sold/leased 288 miles of contiguous rail line in and around Mobile, Ala., to RailAmerica’s wholly owned subsidiary, Alabama & Gulf Coast Railway(AGR), for approximately $15 million in cash. AGR commenced rail service on this line June 1, 2003. The track runs from Amory, Miss., to Mobile and connects directly with AGR at Kimbrough, Ala. As a result of this connection,RailAmerica expects to realize significant synergies and cost savings, as AGR now provides direct access to the Port of Mobile for large paper products manufacturers and other regional customers. AGR anticipates hauling about 23,000 additional carloads and generating approximately $12 million in new operating revenue on this line in its first full year of operation. Major shippers onthe line include Gulf States Paper Corporation, EKA Chemical, Kerr-McGeeChemical, Weyerhaeuser and the Port of Mobile. Including this acquisition, AGR now operates 429 miles of rail line and expects to move approximately 58,000 carloads annually. Principal commodities include paper, pulp and paper products, chemicals and grain.AGR interchanges with five Class I carriers at various locations, including BNSF at both Amory and Columbus, Miss. AGR also gains new interchanges with fellow short line operators Meridian & Bigbee Railroad, Golden Triangle Railroad, Columbus & Greenville Railroad, Luxapalilla Valley Railroad and Terminal Alabama State Docks Railroad. RailAmerica acquired AGR in January2002 when it acquired StatesRail. “This line acquisition is consistent with our strategic approach in North America to build geographic clusters of operations toachieve operating and marketing efficiencies and to grow the existing customer base,” said Gary O. Marino, RailAmerica’s chairman, president and chief executive officer. “Through its ability to offer shippers single line service tothe Port of Mobile, AGR should be able to substantially expand its business base and increase carloads. In addition, this investment should afford our shareholders a significant return on investment and generate substantial free cash flow from operations. Our management team at AGR is truly excited by the reception received to date from new customers and has already identified several new growth opportunities.”
Actually, yes it is. WHat AGR didn't already have, they now run the entire AT&N line. Interesting thing- until it's 1947 acquisition by Frisco, AT&N used 11 RS1s as road power (and had an 80-ton centercab as well). The RS1a became 101-111 on the Frisco, and were used most everywhere.
Wasn't there an article on this AGR in a RR magazine within the past 2-3 years? This company sounds vaguely familar. What do they use for motive power? Boxcab E50
Well, they were once using rebuilt GP3os as part of their motive power, but with RailAmerica's policy of mixing up the motive power fleet, it's anybody's guess. I can say that most likely there are NO GP7s or GP9 running.
Bob- I'm wondering about their "policy of mixing up the motive power fleet....." By this do you mean shuffling the units between their various RR subsidiaries? If so, it would seem that this is a rather time consuming, and costly way of doing business. I can understand it getting the best power for a job in the right place. But....... Boxcab E50
RA owns no motive power- rather, it's sold to a leasing company, and leased back to RA and its railroadsLocomotive Leasing Partners (LLPX) is the major player, but you'll see power from CEFX and Helm Leasing (for example, two HATX SD45-2s used by DGNO for a rock train, and two CEFX SD40-2d used for another rock train).
Your mention of GP30's brings to mind- Wasn't there an article in Railfan or something on AGR? In the last 2-3 years? I cannot recall, but it seems like that company got some print coverage. So does AGR have it's own paint scheme? I hope these leased units aren't a mangled mix of predecessors or lease company schemes. To me, when I see short lines and regionals doing it this way, it looks very bad! Boxcab E50
