RailAmerica sells stock, leases assets of two Texas short lines (5/28/2002)

As it stays its acquisition course, RailAmerica Inc. continues to divest what Chairman, President and Chief Executive Officer Gary Marino terms non-core, non-strategic properties to strengthen the holding company's financial portfolio.

On May 28, RailAmerica sold the capital stock of 107-mile Texas New Mexico Railroad to Permian Basin Railways Inc., a wholly-owned subsidiary of Iowa Pacific Holdings L.L.C., for $2.25 million.

Permian Basin also signed a long-term operating lease with RailAmerica to control the assets of 108-mile West Texas & Lubbock Railroad.

"We remain committed to growing externally through tactical acquisitions, and internally through focused sales and marketing efforts," said Marino in a prepared statement.

Chicago-based Iowa Pacific Holdings owns and operates small- and medium-sized short lines and rail-related enterprises.

Source: Progressive Railroading Daily News