(OmniTRAX issued the following news release on April 1.)
BEDFORD, Texas and DENVER, Colo. — North American RailNet (NAR) and OmniTRAX have jointly announced a transaction whereby an OmniTRAX affiliate will merge with NAR and acquire NAR’s U.S.-based rail operations. The transaction is subject to regulatory approval and is expected to be completed in early May, 2005. The transaction excludes NAR’s Canadian subsidiary, Alberta RailNet, which will be owned post-transaction by current NAR shareholders.
The three US based short lines being acquired by OmniTRAX include:
Georgia & Florida RailNet (GFRR). GFRR is a network of approximately 297 miles of track radiating from its Albany, Georgia headquarters, and extending into northwestern Florida near the Gulf of Mexico. GFRR’s commodity mix is quite diverse, with carload revenue split between wood pulp, beer, agricultural commodities, limestone/aggregate and a multitude of other commodities. Included in its diverse base of 60 customers are Miller Brewing, Procter & Gamble (P&G) and Buckeye Technologies.
Illinois RailNet (IR). IR is comprised of four track segments aggregating 113 miles of track just west of the Chicago suburbs. IR services what is often called “the Sand Capital of the World” in northern Illinois, and serves such leading industrial mineral producers as U.S. Silica, Wedron Silica, and Unimin Corp.
Nebraska, Kansas & Colorado RailNet (NKCR). NKCR operates approximately 559 miles of track in three states and carries a diverse mix of wheat, corn, coal, fertilizer. NKCR has benefited from its ability to attract high throughput grain elevators to its lines due to its superior service record and excellent relationship with BNSF. Specifically, NKCR recently made considerable track improvements in conjunction with upgrade investments by the owners of grain elevators at Venango, Loomis and Maywood, Nebraska, each of which now loads 110-car shuttle trains. In addition to grain, NKCR ships inbound coal to the largest power plant in Nebraska.
“These three short-line railways are an ideal match with our strategic expansion and service plans,” states Bob Parker, OmniTRAX Chief Operating Officer. “Under OmniTRAX management, the addition of these railroads is significant step in the plans for expansion of the regional railway holdings as well as diversification of the customer base.” Mr. Parker also comments that managing these companies expands the partnership with CSXT, NS, and BNSF. Mr. Parker explains that the addition of the three brings the OmniTRAX family to 18 railroad operations in North America.
Rob McKenney, Chairman and CEO of North American RailNet, comments, “These three railroads have provided excellent service to their shippers and connecting carriers, and we are confident they will continue to grow and prosper under the management of OmniTRAX.”
Robert W. Baird & Co. served as financial advisor to North American RailNet in connection with the transaction.
About OmniTRAX: An affiliate of The Broe Companies (www.broe.com), OmniTRAX is the largest privately held rail services company in North America. With its headquarters in Denver, Colorado, OmniTRAX owns and operates many railroads across the U.S. and in three Canadian Provinces. OmniTRAX also owns and operates the Port of Churchill, Manitoba. Additionally, OmniTRAX provides intermodal terminal services to Class I railways through its Quality Terminal Services subsidiary. It also delivers customized private switching services for major industrial complexes through its OmniTRAX Switching Services subsidiary, and provides locomotive maintenance services to Class I railways through its OmniTRAX Locomotive Services subsidiary.
Learn more about OmniTRAX at www.OmniTRAX.com.