(The Associated Press circulated the following story on August 30.)
JACKSONVILLE, Fla. — Railroad operator Genesee & Wyoming Inc. said Monday that it signed a 20-year agreement to lease the assets of the Peoria and Pekin Union Railway Co. through a new subsidiary.
Genesee & Wyoming said it expects the deal between its newly formed unit, the Tazewell & Peoria Railroad Inc., and PPU to add $10 million in annual revenue and to boost earnings.
The owners of the Peoria and Pekin Union Railway include Norfolk Southern Corp., Union Pacific Railroad Co. and Canadian National Railway Co. The PPU line meets up with Genesee & Wyoming’s Illinois & Midland Railroad. The lease includes provisions for automatic 5-year renewals, Genesee & Wyoming said.
Genesee said the deal, which is awaiting regulatory approval, has been approved by the boards of both companies. The railroad operator said it expects to being operations by the fourth quarter of 2004.
Earlier Monday the company said it bought the Savannah Wharf Branch rail line from CSX Corp. for an undisclosed sum. The deal includes the 6.5 miles of track in Savannah, Ga., related assets and a 20-year lease of real estate along the rail line, Genesee & Wyoming said.
Genesee & Wyoming operates more than 8,100 miles of owned, jointly owned or leased track in five countries. The Savannah line was purchased by its unit, Golden Isles Terminal Railroad Inc.
Shares of the company closed down 21 cents, or less than a percent, at $22.92 on the New York Stock Exchange.