(RailAmerica issued the following news release on April 9.)
BOCA RATON, Fla. — RailAmerica, Inc. announced that it has completed its previously announced line purchase from Kansas City Southern (KCS) in Dallas, Texas.
RailAmerica’s Dallas, Garland & Northeastern Railroad (DGNO) has completed the purchase of approximately 2.6 miles of connecting track, right-of-way, real estate leases and facilities in western Dallas from KCS for $850,000 cash. The purchase of this property solidifies DGNO’s long-term leasehold interest and enables the railroad to aggressively pursue significant new business opportunities in this strategically located industrial area. Customers on the line include DelMonte Foods, BOC Gas, Dallas Transfer, DFW Logistics, Liberty Metals, Thermo Serve, Southwest Molding and Train Paper. In conjunction with the purchase of the property, DGNO has signed a six-year agreement to handle KCS-UP interchange traffic in the Dallas area.
The DGNO, headquartered in Richardson, Texas, operates over 187 miles of rail line in and around Dallas, Texas. The railroad, which moves approximately 63,000 carloads of minerals, food, chemicals, lumber, paper and auto parts annually, interchanges traffic with Class I partners Union Pacific, Burlington Northern Santa Fe and KCS. The DGNO was acquired by RailAmerica in early 2000 as part of the acquisition of RailTex, Inc.
RailAmerica, Inc. (NYSE:RRA) is the world’s largest short line and regional railroad operator with 49 railroads operating approximately 12,900 miles in the United States, Canada, Australia and Chile. In Australia and Argentina, an additional 4,300 miles are operated under track access arrangements. The Company is a member of the Russell 2000(R) Index. http://www.railamerica.com