(RailAmerica issued the following news release on October 18.)
BOCA RATON, Fla. — RailAmerica, Inc. (NYSE:RRA) today announced that its subsidiary, Indiana & Ohio Central Railroad, Inc. (IOCR), completed its $8.6 million purchase of 107 miles of railroad from Cincinnati, Ohio to Columbus, Ohio (The Midland Subdivision) and the long-term lease of the related real estate from CSX Corporation’s (NYSE:CSX) subsidiary, CSX Transportation, Inc. The line will be operated as part of the IOCR, which anticipates moving approximately 19,000 carloads annually over the line.
The IOCR connects with the Midland Subdivision at Washington Courthouse, Ohio and RailAmerica’s Indiana & Ohio Railway (IORY) at Springfield, Ohio. Major customers on the line are Cargill, Sabina Farmer’s Exchange, Lowe’s and Weyerhaeuser. Primary commodities shipped on the line are agricultural & farm products, chemicals, and paper products.
Charles Swinburn, Chief Executive Officer of RailAmerica said, “We are pleased to have had the opportunity to work with CSX on the acquisition of the Midland Subdivision. We are excited about expanding our operations in the State of Ohio, and expect to realize significant synergies with this property and our other Ohio and Indiana railroad properties.”
RailAmerica, Inc. (NYSE:RRA) is a leading short line and regional rail service provider with 46 railroads operating approximately 9,100 miles in the United States and Canada. The Company is a member of the Russell 2000(R) Index. Its website may be found at http://www.railamerica.com.