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1/3/2024
The Gulf & Atlantic Railways LLC last week received Surface Transportation Board approval to acquire and directly control the Northern Indiana Railroad Co. (NIRC), effective Jan. 21.
Under an agreement dated March 17, 2023, GAR agreed to acquire 100% of equity in the NIRC, which owns 32.97 miles of track in Indiana, but has never conducted freight-rail operations over the line. GAR’s Chesapeake and Indiana Railroad (CKIN) has leased and operated the NIRC line since 2004, according to the STB’s decision as reported in the Federal Register.
Currently, CKIN leases and operates 27.5 miles of track from NIRC because CKIN discontinued service over the remaining 5.45-mile segment in 2017. The segment remains part of the national rail network, but no freight-rail activity has occurred over it since at least 2015.
GAR will have direct control over the NIRC, while Macquarie Infrastructure Partners V GP LLC, Macquarie Infrastructure Partners V fund vehicle and MIP V Rail LLC will indirectly control NIRC.
GAR will provide financial strength and management expertise to the NIRC and enhance its access to capital. The transaction will not affect CKIN’s operations or service to customers on the line, according to the filing.
The STB's decision can be read here.