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Rail News: M&A

Watco leases BNSF lines in Montana, launches Yellowstone Valley Railroad

Yesterday, Yellowstone Valley Railroad Inc. (YSVR) began operating two former BNSF Railway Co. lines between Glendive and Snowden, and Bainville and Scobey, Mont. YSVR owner Watco Cos. Inc. recently leased the two segments totaling 171 track miles from the Class I.

The newly formed short line — which will move agricultural, bulk food and petroleum products on the lines — also obtained related yard, industry and mainline trackage rights from BNSF. The Class I will continue to serve existing customers in Bainville and interchange with YSVR in Snowden or Glendive.

“This will be our second railroad in Montana, and we are looking forward to expanding our operations in the state and providing quality service on these two lines,” said Watco President Terry Towner in a prepared statement.

In addition to YSVR, Watco owns 15 short lines operating in 15 states.

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More News from 8/16/2005