From Yahoo Groups' Shortlines group, this notice: North American RailNet (NAR) and OmniTRAX have jointly announced a transaction whereby an OmniTRAX affiliate will merge with NAR and acquire NAR's U.S.-based rail operations. The transaction is subject to regulatory approval and is expected to be completed in early May, 2005. The transaction excludes NAR's Canadian subsidiary, Alberta RailNet, which will be owned post-transaction by current NAR shareholders. The three U.S.-based short lines being acquired by OmniTRAX include: Georgia & Florida RailNet (GFRR). GFRR is a network of approximately 297 miles of track radiating from its Albany, Georgia, headquarters, and extending into northwestern Florida near the Gulf of Mexico. GFRR's commodity mix is quite diverse, with carload revenue split between wood pulp, beer, agricultural commodities, limestone/ aggregate and a multitude of other commodities. Included in its diverse base of 60 customers are Miller Brewing, Procter & Gamble (P&G) and Buckeye Technologies. Illinois RailNet (IR). IR is comprised of four track segments aggregating 113 miles of track just west of the Chicago suburbs. IR services what is often called "the Sand Capital of the World" in northern Illinois, and serves such leading industrial mineral producers as U.S. Silica, Wedron Silica, and Unimin Corp. Nebraska, Kansas & Colorado RailNet (NKCR). NKCR operates approximately 559 miles of track in three states and carries a diverse mix of wheat, corn, coal, fertilizer. NKCR has benefited from its ability to attract high throughput grain elevators to its lines due to its superior service record and excellent relationship with BNSF. Specifically, NKCR recently made considerable track improvements in conjunction with upgrade investments by the owners of grain elevators at Venango, Loomis and Maywood, Nebraska, each of which now loads 110-car shuttle trains. In addition to grain, NKCR ships inbound coal to the largest power plant in Nebraska.
A lot of big moves recently, by the shortline spinoff operators. I wonder what this trend foretells? Boxcab E50
I believe the railroad industry is coming into full circle. many years ago there were hundreds of shortline and regional carriers, over time, they evolved into 5-10 major carriers peaking in the mid eighties. Now, these large railroads cannot afford or don't see the return in investment on these line to operate to, so they sell and lease off branch lines and entire subdivisions. So the trend leads back to the creation of several shortlines and regional carriers as it was "way back then" . This also helps keep older second hand locomotives away from the torch.
Pat- I agree with your assessment. We'd talk of this when I was around it, ten years and more ago. But I am more wondering of what the short line companies are doing. Where they are heading? Amongst several larger ones, there have been a few significant acquisitions of other short line operators assets recently. Are some consolidating, stengthening their place in this? While others appear as though moving out of the same business? Will we end up with a couple of large companies, holding control of many short lines? In effect, almost major RR operators themselves, when compared with the few remaining Class 1 operators.... Boxcab E50
