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RailAmerica creates contract-switching subsidiary

RailAmerica Inc. is entering the contract-switching business. Yesterday, the short-line holding company announced it formed RailAmerica Contract Switching Services (RACS) to offer rail-car switching, car and locomotive repair, car cleaning and track maintenance services.

Businesses that have a continuous need for car handling services engage a third-party supplier to move cars into, out of and within a manufacturing or distribution facility. Now, RailAmerica can serve as that third-party supplier to industrial customers.

RACS will provide easier access to mechanical facilities, and the new subsidiary’s on-site staff and equipment will help decrease the cost of transporting locomotives, equipment and personnel, RailAmerica officials said in a prepared statement.

Contact Progressive Railroading editorial staff.

More News from 8/12/2009