(The following appeared on the Progressive Railroading website on August 10, 2010.)
Yesterday, Patriot Rail Corp. announced it agreed in principle to purchase Weyerhaeuser Co.’s six short lines. The acquisition is subject to certain closing conditions — including Patriot Rail’s due diligence and regulatory approval — and is expected to close in the fourth quarter.
The short lines, which operate a total of 160 miles of track in four states, include the DeQueen and Eastern Railroad Co., which comprises the DeQueen and Eastern and Texas, Oklahoma & Eastern railroads; the Columbia & Cowlitz Railway; Weyerhaeuser Woods Railroad; Golden Triangle Railroad; and Mississippi & Skuna Valley Railroad.
The railroads primarily serve Weyerhaeuser and International Paper mills, as well as some third-party customers. The acquisition would double the rail holdings of Patriot Rail, which currently owns and operates six short lines operating in eight states.
The Weyerhaeuser short lines “are very attractive railroads with appealing growth opportunities and are a key step in our company’s strategic growth process,” said Patriot Rail Chairman, President and Chief Executive Officer Gary Marino in a prepared statement.
Patriot Rail also recently signed an agreement to lease and operate the 13-mile Piedmont & Northern Railroad in North Carolina.