Got this off the Railspot group, and thought it may be interesting. An article from the South Florida Business Journal: RailAmerica sells 2 assets Published: December 9, 2004 ------------------------------------------------------------ Short line and regional railroad operator RailAmerica has sold its Arizona Eastern Railway Co. and its West Texas and Lubbock Railroad Co. subsidiaries to Permian Basin Railways for a total of $8.05 million. RailAmerica (NYSE: RRA) said it received $2.75 million cash for its shares of the Arizona Eastern Railway Co., and $1.75 million cash and a note for $3.55 million for its shares in the West Texas and Lubbock Railroad Co. The Boca Raton-based company also said Permian Basin Railways has leased and operated the West Texas and Lubbock Railroad since May 2002. Arizona Eastern Railway Co. owns and operates 135 track miles between Miami, Ariz., and Bowie, Ariz. West Texas and Lubbock Railroad Co. owns and operates 104 track miles between Seagraves and Lubbock, Texas, and from Lubbock to Whiteface, Texas. Shares closed down 61 cents to $12.21. The 52-week high was $14.75 on June 30. The 52-week low was $10.18 on Aug. 9. Copyright(c) American City Business Journals Inc. All rights reserved. You can view this article on the web at: http://southflorida.bizjournals.com/southflorida/stories/2004/12/06/daily48.html
Permian Basin is owned by a company in Chicago: http://www.iowapacific.com/ Any idea who the people are, that own this corporation? Their web site has precious little to say. Sounds as though they have railroading experience. Names might tell us more of their background. Boxcab E50
RailAmerica is apparently also on the verge of selling the E&N...the buyer has not been disclosed yet, should find out in the new year.
Interesting. I photograph the Arizona Eastern from time to time. Recently heard there were VAST new copper finds deep underground that are likely to be developed. Miami might just boom again.
Steve- Just curious, haven't looked closely- If they were to open/reopen copper mining, could they compete, price-wise, with imports? Such as from South America? Would it be economically feasible? Hope so! Where would they smelt? Boxcab E50
Well, not really watching copper that closely since the price plummeted a few years ago. A lot of Arizona mining went under/mothballed, including the supporting trains. The reserves deep under Miami, I understand, are going to be exploited by a British firm via tunneling, not open pit! This is highly unusual in this day and age. As to your question, I guess it must be competitive, or they wouldn't do it! I would think there is enough local smelting capacity, but I could be wrong. AZER runs two or three CORP GP-38s, along with their own (GP20s?).
Steve- Please pass along any further updates on this project. It will be interesting to see how it could effect railroading in the region. Boxcab E50
Boxcab, well the Red, Blue and Grey units are still here. New operator is in talks with RailAmerica and we should hear something in the new year. Hopefully it's before I go to Vancouver for my conductor training. Glenn Migneault photo.
My ultimate goal is to become a locomotive engineer on the E&N Railway, or whatever form it's operating in, in the future. I may have to spend some time working for a railway on the mainland, like CP, CN, SRY, etc. It all depends on what happens in the new year.
Best of luck with your training! Perhaps the opportunity will present itself, so you can post up a few pictures of your adventures? If such is allowed.....? Boxcab E50
Hi to all here. Actually Rail America has sold off more than 2 Short Lines, although I don't know if you would call Australia's Freight Australia a Short Line. But anyway late last year Rail America sold off the Victoria, Australia based "Freight Australia" to the (becoming a monopoly railway here in OZ), Pacific National Corporation. Pity raelly as i was just getting used to the Colors of Freight Australia's locos. Now we have Pacific National applying that slightly modified (former rail operator),Freight Corp. (from New South Wales, Australia),Blue & Yellow livery to former Rail America/Freight Australia locos. Well that's my bit of say.
They seem to be shrinking themselves. I wonder if there is a reason? Gathering capital for some forthcoming project? Or perhaps just thinning some less profitable decisions? Boxcab E50
I think RailAmerica got too big too fast and now that the previous CEO is gone, the board of directors, wanting to cut costs, sold off the international rail lines.
Tyler- That certainly sounds like a good possibility. We've seen it happen elsewhere throughout the business world. So why not in shortline operations! Boxcab E50
