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5/20/2003



Rail News: Rail Industry Trends

New Class III to build, operate line serving Texas quarry


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On May 19, Surface Transportation Board conditionally approved Southwest Gulf Railroad Co.'s (SGR) plans to build and operate a seven-mile line in Medina County, Texas, to serve Vulcan Construction Materials L.P.'s proposed 1,700-acre quarry. The track would connect with Union Pacific Railroad's Del Rio Subdivision line near Dunlay, Texas.


The board plans soon to conduct an environmental review of the project.


The line would enable SGR to move aggregate from the proposed quarry to eastern Texas, including the Houston area. The soon-to-be new Class III railroad also plans to serve other shippers that locate on or near the line.


SGR expects eventually to contract another railroad to operate the line.


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