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Rail News: M&A

RailAmerica sells Colorado short line to Permian Basin Railways

Last week, RailAmerica Inc. sold another short line to Permian Basin Railways Inc. The Iowa Pacific Holdings subsidiary purchased the 154-mile San Luis and Rio Grande Railroad (SLRG) for $5.5 million cash, a $980,000 note and $520,000 in proceeds from the sale of the short line’s non-operating real estate to third parties. SLRG operates lines between Walsenburg and Derrick, and Alamosa and Antonito, Colo.

“The sale is part of our previously announced plan to restructure our portfolio of railroads into its most economic core,” said RailAmerica Chief Executive Officer Charles Swinburn in a prepared statement.

Last year, Permian Basin Railways Inc. purchased the Arizona Eastern Railway and West Texas and Lubbock Railroad from RailAmerica, which now owns 46 regionals and short lines in the United States and Canada.

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More News from 12/27/2005