Mark Szakonyi, Daily Content Editor | Feb 02, 2012 4:06PM EST
RailAmerica this week announced the acquisition of a Michigan short-line railroad, a Northeast short-line railroad and a transload operator for $58 million.
The Jacksonville, Fla.-based short-line operator bought Marquette Rail, a 126-mile employee-owned railroad, for $40 million. The short-line railroad, which hauled about 15,000 carloads last year, primarily serves chemical, pulp and paper, and non-metallic industrial shippers. The line connects with CSX Transportation’s network in Grand Rapids.
"The acquisition of Marquette represents an attractive opportunity to invest in a high-quality franchise with a solid base of revenue from large, long-term customers and drive substantial near-term growth from new developments on the line,” said RailAmerica President and CEO John Giles. “In addition, the railroad is in close proximity to RailAmerica's existing Michigan operations, which we expect will create significant operating efficiencies."
RailAmerica expects Marquette will generate about $13 million of revenue over the next 12 months.
RailAmerica also bought a 70 percent interest in Wellsboro and Coming Railroad, and Industrial Waste Group from the Myles Group for $18 million. The 38-mile short-line connects Wellsboro, Penn., and Corning, N.Y., and primarily handles shipments of industrial products used in the natural resources industry.
IWG provides transload, storage and other services to energy and waste management customers. The company operates transloading facilties in Wellsboro, Penn.; Corning, N.Y.; Toledo, Ohio; and Amelia, Va.
“The rail and transloading infrastructure at Wellsboro is uniquely located in the heart of the northern Marcellus Shale and represents a key asset in the transportation of both inbound and outbound products for major exploration and production companies,” Giles said.
-- Contact Mark Szakonyi at mszakonyi@joc.com. Follow him on Twitter @Szakonyi_JOC