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Yesterday, RailAmerica Inc. announced it completed the sale of Arizona Eastern Railway Co. and West Texas and Lubbock Railroad Co. Inc. to Permian Basin Railways Inc., which has been operating the Texas short line under a lease agreement since May 2002. RailAmerica received $2.75 million cash for Arizona Eastern, and $1.75 million cash and a $3.55 million note for West Texas and Lubbock.

Arizona Eastern owns and operates 135 track miles between Miami and Bowie, Ariz.; West Texas and Lubbock owns and operates 104 track miles between Seagraves and Lubbock, and Lubbock and Whiteface, Texas.

"Our previous transactions with [RailAmerica] have benefited all stakeholders, and we expect nothing less with Arizona Eastern and West Texas and Lubbock," said Ed Ellis, president of Iowa Pacific Holdings L.L.C. — which owns and operates small- and medium-sized short lines and rail-related enterprises, including Permian Basin Railways — in a prepared statement.

In 2002, RailAmerica sold the 107-mile Texas New Mexico Railroad to Permian Basin Railways.