BOCA RATON, Fla. — RailAmerica, Inc., the world’s largest short line and regional railroad operator, announced that its Chilean railroad, Empresa de Transporte Ferroviario S.A. (Ferronor), entered into a five-year rail transportation agreement with Norgas S.A. of Valparaiso, Chile — the largest supplier of compressed natural gas (CNG) to northern Chile — valued at US$9 million.
Under the US dollar-denominated agreement, Ferronor will transport CNG in tank cars, on a prepaid basis, from northwest Argentina to locations in the northern region of Chile. The CNG will then be distributed via truck to surrounding industrial and commercial customers.
“This new agreement is yet another success story for our Chilean operation where we have more than doubled revenues since acquiring it in 1997,” said Gary O. Marino, Chairman, President, & CEO of RailAmerica. “Under our ownership, Ferronor has signed more than US$420 million in long-term transportation agreements.”
RailAmerica purchased a 55% interest in Ferronor, a 1,400-mile railroad based in Coquimbo, Chile, from the Chilean government in February 1997 for US $6.7 million. The operation consists of two regional railroads that serve the mining region of northern Chile and northwestern Argentina. In 2001, Ferronor recorded revenues of US$22 million and moved 107,000 carloads of freight.
RailAmerica, Inc. (www.railamerica.com ), the world’s largest short line and regional railroad operator, owns 49 railroads operating approximately 12,800 route miles in the United States, Canada, Australia and Chile. In North America, the Company’s railroads operate in 27 states and six Canadian provinces. Internationally, the Company operates 4,300 route miles under track access arrangements in Australia and Argentina. RailAmerica is a member of the Russell 2000(R) Index and in October 2001 was ranked 85th on Forbes magazine’s list of the 200 Best Small Companies in America.