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Rail News: M&A

RailAmerica subsidiary to purchase CSXT Ohio line

Today, RailAmerica Inc. announced that subsidiary Indiana & Ohio Central Railroad (IOCR) had notified the Surface Transportation Board of its intent to purchase a 107-mile Ohio rail line from CSX Transportation. The deal for the line — which extends from Cincinnati to Columbus, Ohio — is subject to negotiation and execution of a definitive agreement.

As part of the deal, IOCR also would lease the related real estate from CSXT. IOCR officials project the line would carry about 18,000 carloads annually over the line. Potential customers include Cargill, Sabina Farmer's Exchange, Lowe's and Weyerhaeuser.

Meanwhile, RailAmerica officials expect to "realize significant synergy" between the line and the short-line holding company's other Ohio and Indiana railroad properties, according to a prepared statement. IOCR connects with the Midland Subdivision at Washington Courthouse, Ohio, and RailAmerica's Indiana & Ohio Railway in Springfield, Ohio.

Earlier this year, RailAmerica subsidiary Central Railroad Co. of Indianapolis began leasing a 276-mile CSXT line known as the Fort Wayne Corridor; the line runs west from Crestline, Ohio, to Tolleston, Ind., due east of Chicago. Central Railroad officials expect the 83-mile short line — which this month commenced operations as a RailAmerica subsidiary — to move 42,000 carloads annually on the corridor.

RailAmerica owns and operates 47 regionals and short lines in the United States and Canada.

Contact Progressive Railroading editorial staff.

More News from 8/13/2004