(Reuters circulated the following article on November 28.)
SAN FRANCISCO — The BNSF Railway Co. unit of Burlington Northern Santa Fe Corp. said on Monday it reached an agreement with the New Mexico Department of Transportation to sell a 300-mile rail line to the state for $76 million to create a commuter rail line.
The sale of the line between Belen, Mexico, and Trinidad, Colorado, will be closed in segments, and BNSF will keep on-going freight easement rights on the line, the railroad said.
BNSF said the majority of proceeds from the sale will be received in 2006. The company will record a noncash loss of $75 million, or 12 cents per share, in the 2005 fourth quarter and expects to record a gain of $25 million, or 4 cents per share, in the first quarter next year, it said.
New Mexico Gov. Bill Richardson said in a statement that setting up commuter train service will help the state reduce traffic congestion and pollution and attract new business along the Rio Grande Corridor.
New Mexico also will acquire part of BNSF’s Albuquerque rail yard property.
The sale and start of commuter rail service depends on the completion of other agreements expected by early next year, BNSF said.
BNSF operates one of the largest rail networks in North America with about 32,000-route-miles in 28 states and two Canadian provinces.