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RailAmerica Inc. Dec. 18 announced that its 176-mile Indiana Southern Railroad Inc. (ISRR) subsidiary began moving coal under a transportation agreement with Black Beauty Coal Co. — diverting what had been truck shipments to rail.
Under the five-year agreement, ISRR annually will move a minimum of 750,000 tons of coal — about 8,000 carloads — through 2006. RailAmerica officials believe ISRR will move more than 1 million tons of coal — about 11,000 carloads — during the contract's first year.
"This strategic agreement is another example of RailAmerica's commitment to providing superior short-line rail service to its customers through innovative, truck-competitive solutions," said Gary Marino, RailAmerica chairman, president and chief executive officer, in a prepared statement, adding that the contract would enable ISRR to grow its carload business while attracting new business to its line.
Petersburg, Ind.-based ISRR annually moves about 45,000 carloads in central and southwestern Indiana.