Buckingham Branch set to acquire NS-owned lines in Virginia
11/14/2023
By Jeff Stagl, Managing Editor
Buckingham Branch Railroad Co. (BBR) soon expects to assume ownership of two lines in Virginia it has leased from Norfolk Southern Railway for more than 14 years.
BBR recently filed for an exemption with the Surface Transportation Board (STB) to acquire a total of 58.1 miles of track from the Class I. The two parties recently reached a purchase agreement.
The two interconnected lines — which run between Burkeville, Keysville and Clarksville, Virginia — historically have been owned by NS, Southern Railway Co. and other predecessors. BBR has operated the lines since 2009 through a lease agreement with NS.
A 280-mile short line, BBR operates in central Virginia and interchanges with CSX and Norfolk Southern Railway. Its system is divided into four divisions: the Buckingham Division spanning 17 miles between Bremo and Dillwyn; Norfolk Division covering five miles between Norfolk and Virginia Beach; Richmond & Alleghany Division stretching 199 miles between Richmond and Clifton Forge; and Virginia Southern Division encompassing 59 miles between Burkeville and Clarksville.
BBR also offers transloading, rail-car storage and industrial rail-car switching services. The family-owned short line was launched in 1989, initially operating over a 17-mile branch line between Bremo and Dillwyn that was acquired from CSX.
BBR operates 280 miles of track in central Virginia and interchanges with CSX and NS. The short line’s system is divided into four divisions, the largest of which encompasses 199 miles of track. Buckingham Branch Railroad Co. The acquisition should be completed by year’s end pending STB approval, says BBR CEO Mark Bryant.
The short line’s annual revenue currently exceeds $5 million and isn’t expected to grow substantially after the transaction closes. The projected post-transaction revenue will not result in the railroad becoming a Class I or II carrier, BBR officials wrote in the STB filing.
Given the limited nature and scope of the transaction — the short line long has operated all but about 1.2 miles of the lines (which are managed by NS) — there is no anticipated need to hire any new or additional employees before or after the transaction closes, BBR officials say. The short line currently employs about 80 people.
By owning the line instead of leasing it, BBR can secure itself as the route’s long-term operator, says Bryant.
“This will allow us to continue to invest in the line for future growth,” he says.
Prior to the NS deal, BBR’s most recent expansion occurred in 2018, when the short line began leasing and operating the Norfolk Division. Part of that line is leased from NS and part is leased from private entity Canonie Atlantic Co.
Even though the Norfolk Division line is only five miles long, it’s strategically located in Virginia’s most industrialized region and provides connections to both NS and CSX, BBR officials say.