(The Arizona Railroad Group issued the following news release on November 4.)
SCOTTSDALE, Ariz. — The Arizona Railroad Group (AZRRG), an Arizona-based railroad investment company headed by David Parkinson, founder and former chairman of the Arizona & California, California Northern, and Puget Sound & Pacific railroads, has acquired the San Pedro & Southwestern Railroad (SPSR) from RailAmerica, Inc. (NYSE: RRA – News). The sale price was not disclosed.
Operations under the new owner began Monday (November 3) over 67.9 miles of track extending from a connection with Union Pacific’s Los Angeles-Chicago main line at Benson, Ariz. to Paul Spur, near Douglas, Ariz.
SPSR’s headquarters and marketing office are located in Scottsdale. Operations and customer service continue to be based at Benson with no change in train and office personnel.
Parkinson said, “We believe the San Pedro & Southwestern has some significant upside potential and intend to grow the business. Primarily, we will be focusing on rail and industrial development opportunities in southeastern Arizona.”
The railroad’s chief sources of traffic have been agricultural chemicals and copper-related products. Freight cars are supplied by the Union Pacific and connecting railroads.
The railroad’s main line is laid with heavy 112-to-132-lb. rail and can accommodate 286,000-lb. gross weight cars. Parkinson said, “We have a good track structure in place and a maintenance plan to assure it remains in good condition.”