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Rail News: Short Lines & Regionals

OmniTRAX acquires Stockton Terminal & Eastern; Regional Rail launches operations on leased NS line


Yesterday, OmniTRAX Inc. announced it acquired the Stockton Terminal & Eastern Railroad Co. (ST&E), which has operated in California's Central Valley since 1908.

The 25-mile short line is linked to the Port of Stockton, Calif., via BNSF Railway Co. and Union Pacific Railroad. ST&E's line is located near Interstate 5, one of North America's busiest freight corridors, and serves a number of Fortune 500 customers, according to OmniTRAX.

The short line also provides rail access to industrial facilities, warehouses, agricultural fields and industrial-zoned property. Concurrent with the acquisition, OmniTRAX formed a joint venture with ST&E's prior owner to develop facilities and attract new rail business in the area.

“The ST&E has a long and storied history and has provided quality rail service to its customers for decades,” said OmniTRAX President and Chief Executive Officer Gary Long in a prepared statement. “We look forward to … working with the customers in Stockton to help grow their businesses and to bring new industries and jobs to the area.”

OmniTRAX now owns 17 regionals and short lines operating in 11 states and three Canadian provinces. The company also provides intermodal, transloading, industrial switching and port services.

Meanwhile, Regional Rail L.L.C. on Monday began operating an industrial track between York and Stony Brook, Pa., it leased from Norfolk Southern Corp. The line will be operated by Regional Rail subsidiary East Penn Railroad L.L.C., which serves southeastern Pennsylvania and Delaware. The new operation connects with NS and York Railway in York.

Regional Rail also is the parent company of the Middletown & New Jersey Railroad L.L.C, which owns and/or operates four lines in southeastern New York.

Contact Progressive Railroading editorial staff.

More News from 8/3/2011