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9/26/2002



Rail News: Passenger Rail

Herzog, Stagecoach partner to create TransitAmerica


Herzog Transit Services Inc. and United Kingdom-based Stagecoach Group plc Sept. 23 announced they’d formed TransitAmerica L.L.C. to pursue operations and maintenance contract opportunities at U.S. transit and commuter-rail agencies.



The combination isn’t a merger or acquisition, but rather a joint venture that would combine the companies’ resources and experience with rail systems in both countries.



Herzog Transit Services will continue using that name to serve existing customers Tri-County Commuter Rail Authority, Altamont Commuter Express, North Carolina Department of Transportation, Trinity Railway Express and New Jersey Transit’s Atlantic City Line.



Stagecoach, which owns 49 percent of Virgin Rail Group, will use its same name to continue serving its existing U.K. customers, including South West Trains, the Island Line U.K. rail franchise and Sheffield, England’s light-rail system.



But the companies plan to pursue all new ventures on U.S. soil as TransitAmerica, including a potential maintenance contract for which Massachusetts Bay Transit Authority currently is accepting bids, as well as other possibilities at Utah Transit Authority and Virginia Railway Express.



"The timing was good and the fit was right," says Norm Jester, vice president of Herzog Transit Services. "We see a lot of opportunities in the next five to 10 years.



Kathi Kube


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