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October 2006
— Jeff Stagl
ILast month, two of Genesee & Wyoming Inc.’s (GWI) subsidiary railroads took ownership of dozens more track miles after the holding company completed a couple of deals. GWI acquired the assets of the Chattahoochee & Gulf Railroad Co. Inc. (CHAT) and the H&S Railroad Co. Inc. (H&S) from Gulf & Ohio Railways for $6 million in cash. Chattahoochee Bay Railroad Inc., a newly formed GWI subsidiary, will operate lines formerly owned by the railroads, which are contiguous to each other. H&S primarily provides switching services for GE Rail Services’ Dothan, Ala., plant. CHAT operates a 29-mile line between Hilton, Ga., and Dothan and Taylor, Ala., and connects with GWI’s Bay Line and Chattahoochee Industrial railroads. CHAT primarily handles overhead traffic between Norfolk Southern Railway and the Bay Line, and also interchanges with CSX Transportation. GWI officials expect the Chattahoochee Bay to move more than 5,500 carloads annually. The holding company also exercised an option to purchase from NS a 12.5-mile line that runs through Portsmouth, Chesapeake and Suffolk, Va. GWI’s Commonwealth Railway (CWRY) will own and continue to operate the line. New terminal on tap CWRY will serve a $450 million APM Terminals container terminal in Portsmouth, Va., which will be completed in July 2007. GWI is spending $14 million (including $6 million in government grants) to construct a marshalling yard in Suffolk to facilitate a CWRY interchange with NS and CSXT, as well as install track connecting CWRY’s mainline to the new APM terminal. The holding company also will upgrade existing track and improve crossing signals between the new yard and terminal.
Next month, Raritan Central Railway L.L.C. will begin hauling soy oil for one of its newest customers: BioEnergy of America. The 16-mile railroad will deliver the freight to BioEnergy’s new $6 million plant in the Heller Industrial Park in Edison, N.J., where the company will process the soy oil into biodiesel fuel. Raritan Central expects to move 2,000 carloads annually for BioEnergy, which plans to produce about 43 million gallons of biodiesel each year. The company chose the park location because the plant will be located near the end-user, and have access to rail and truck service, according to Raritan Central, which serves Edison’s Heller and Raritan Center industrial parks. “We have joined a significant trend in the rail industry — the emergence of biofuels as a source of carloads and revenues,” said Raritan Central President Eyal Shapira in the short line’s fall newsletter.
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