(RailAmerica issued the following news release on May 13.)
BOCA RATON, Fla. — RailAmerica, Inc. today announced that its Indiana Southern Railroad (ISRR) has extended and increased the terms of two existing transportation contracts for an additional $17.8 million of revenue.
The ISRR has extended the terms of its two coal transportation contracts with Hoosier Energy Rural Electric Cooperative, whose member distribution cooperatives provide much of the power on which rural Indiana depends. Under the first agreement, the ISRR will continue to move coal from Black Beauty’s Somerville complex to Merom, Indiana, through December 31, 2010. Annual carloads moved under the agreement are expected to increase gradually from 1,500 to 9,000 annually during the period.
The ISRR has amended the terms of its second agreement with Hoosier Energy to transport coal from Horizon’s Kindill 2 Mine to Merom through December 31, 2006. This year the ISRR expects to move approximately 2,100 additional carloads from this contract. Starting in 2004, annual carloads are expected to be 13,000.
Harold Leitze, Hoosier Energy’s Department Manager of Fuels, said “Hoosier Energy has found ISRR to be customer-oriented and we look forward to continuing our business relationship.”
“Indiana Southern is delighted to strengthen its relationship with Hoosier Energy, whose coal shipments to Merom Station are a mainstay of our business,” said Charles Fooks, General Manager at the ISRR. “Our dependable, flexible and cost-effective rail transportation is reflected by our high customer loyalty and we continue to win business based on our personalized shipping solutions.”
The ISRR, based in Petersburg, Indiana, operates 176 miles of rail line just south of Indianapolis to Evansville, Indiana. The railroad, which moves approximately 66,000 carloads of coal, farm products and chemicals annually, interchanges traffic with partners Indiana Rail Road, CSX, Norfolk Southern and Canadian Pacific. RailAmerica acquired the ISRR in early 2000 as part of the RailTex, Inc. acquisition.
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