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Rail News: Rail Industry Trends

KCS, Dallas short line reach track purchase, interchange agreement


On Dec. 17, Kansas City Southern reached an agreement with Dallas, Garland & Northeastern Railroad Inc. (DGNO), under which the 186-mile short line will purchase from KCS 2.6 track miles, right of way, real estate leases and facilities in West Dallas. The railroads expect to complete the deal in early 2003.

KCS and DGNO also plan to finalize a six-year agreement, under which the short line will continue handling interchange traffic for the Class I and the two railroads will attempt to jointly grow traffic through West Dallas.

DGNO is a subsidiary of RailAmerica Inc., which obtained the short line in 2000 as part of its RailTex Inc. purchase.