(RailAmerica issued the following news release on August 13.)
BOCA RATON, Fla. — RailAmerica, Inc. announced that its subsidiary, Indiana & Ohio Central Railroad (IOCR), notified the Surface Transportation Board (STB) of its intent to purchase 107 miles of railroad from Cincinnati, Ohio to Columbus, Ohio (The Midland Subdivision) and to lease the related real estate from CSX Corporation’s (NYSE:CSX) subsidiary, CSX Transportation, Inc., subject to negotiation and execution of a definitive agreement. The line will be operated as part of the IOCR, which anticipates moving approximately 18,000 carloads annually over the line.
RailAmerica expects to realize significant synergy between the line and its other Ohio and Indiana railroad properties. 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.
The Midland Subdivision is the second line awarded by CSX to subsidiaries of RailAmerica this year. The Chicago, Fort Wayne & Eastern Railroad (CFE), which was acquired through a lease agreement with CSX by the Central Railroad of Indianapolis (CERA), commenced operations on August 1, 2004.
RailAmerica, Inc. (NYSE:RRA) is a leading short line and regional rail service provider with 48 railroads operating approximately 12,300 miles in the United States, Canada, and Australia. The Company is a member of the Russell 2000(R) Index. Its website may be found at http://www.railamerica.com.