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Rail News: M&A

Dallas, Garland & Northeastern to lease, operate UP line

Dallas, Garland & Northeastern Railroad Inc. (DGNO) recently filed an exemption notice with the Surface Transportation Board to lease and operate 11 track miles owned by Union Pacific Railroad between CentrePort, Texas, and the Class Is' Mockingbird Yard.

In 2002, DGNO reached a six-year agreement with Kansas City Southern under which the short line handles KCS' Dallas-area interchange traffic with UP. DGNO also purchased 2.6 track miles, right of way, real-estate leases and facilities in western Dallas from KCS.

Owned by RailAmerica Inc., DGNO operates more than 300 track miles and moves grain, steel and food products, paper, fertilizer, scrap iron, forest products, crushed stone, auto parts, plastics and chemicals.

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More News from 7/8/2004