Short lines under new ownership

Five U.S. short lines and one overseas short-haul railroad changed owners last month.

Permian Basin Railways Inc. purchased Mount Hood Railroad (MHRR) from a group of local and regional investors. The 102-year-old MHRR provides freight-rail service on a 22-mile line between Hood River and Parkdale, Ore., and offers excursion and dinner trains from April to December.

An Iowa Pacific Holdings subsidiary, Permian Basin Railways owns the Arizona Eastern, Chicago Terminal, Texas-New Mexico, West Texas & Lubbock and San Luis & Rio Grande (SLRG) railroads. Between May and October, the San Luis & Rio Grande operates excursion trains in Colorado.

Permian Basin Railways plans to ensure MHRR remains a popular tourist train and develop the short line’s local traffic, said Iowa Pacific Holdings President Ed Ellis in a prepared statement.

Meanwhile, South Barre, Mass., businessman John Pondelli Jr. purchased the Massachusetts Central Railroad Corp. from Richard Close of Vancouver, British Columbia. Established in 1975, Massachusetts Central operates a 25-mile line between South Barre and Palmer, Mass.

Finally, Genesee & Wyoming Inc. (GWI) swung deals to acquire a fellow U.S. short-line holding company and a short-haul railroad in The Netherlands.

GWI signed an agreement to acquire CAGY Industries Inc. for $78.4 million in cash. Founded in 1975, CAGY owns the Columbus & Greenville Railway, Chattooga & Chickamauga Railway and Luxapalila Valley Railroad, which operate more than 280 miles of track. The deal is expected to close on June 1.

GWI also acquired Rotterdam Rail Feeding for $21.4 million in cash and up to $2.4 million in additional payments during the next three years. Rotterdam Rail Feeding provides short-haul rail and switching services at the Port of Rotterdam for long-haul railroads and industrial customers. The company also provides locomotives, operating personnel and rail-related services.