(The Patriot-News posted the following story by John Beauge on its website on March 25.)
NORTHUMBERLAND, Pa. — The five short-line railroads in central Pennsylvania that operate on tracks owned by the SEDA Council of Governments Joint Rail Authority posted a profit of $144,000 last year.
That compares with a profit of $60,000 in 2001 and losses of $22,000 and $105,000 in 2000 and 1999, respectively, said Richard D. Robey, president of the railroad holding company based in Northumberland.
Robey attributed the better financial picture to cost reductions, since total annual revenues have remained fairly steady in the $9 million range.
The profit last year was achieved despite closing of the International Paper Co. plant in Lock Haven, Robey noted.
That plant accounted for 17 percent of the carloads handled by the rail lines and 12 percent of the revenue, but overall revenue was off only 2 percent from 2001, he said.
The former Hammermill paper plant was on the Bald Eagle & Nittany line. First Quality Enterprises is buying the Hammermill property and will be constructing a modern plant to make toilet and facial tissue. It plans to be a major customer of the Bald Eagle & Nittany, which serves the Lock Haven, Milesburg and Tyrone areas, Robey said.
Other short-line railroads that operate on authority track are the Lycoming Valley in the Williamsport area, Shamokin Valley, Juniata Valley in the Lewistown area and the North Shore, which serves the Northumberland, Danville, Bloomsburg and Berwick areas. Most of the track had been abandoned by the former Conrail.
“We are bringing customers back and expanding,” Robey said, noting that the short-lines can provide service when customers need it.
Late last year, when Norfolk Southern ended through freight service between Sunbury and Buffalo, N.Y., the rail yard in Northumberland became a major transfer point. Norfolk Southern drops off and picks up cars there for the Lycoming Valley, Shamokin Valley, North Shore and Union County Industrial Railroad.
The Union County line runs between Winfield and Allenwood, with spurs to Mifflinburg and Milton. It is operated by Robey but does not use authority tracks.
The rail authority, based in Lewisburg, is marking its 20th anniversary this year. It started in 1983 with 80 miles of track and today has 195 miles. In the first full year of operation, the short-lines moved 1,700 carloads. That increased to nearly 30,000 carloads last year, Robey said.
To mark the anniversary, the authority is planning to offer excursions later in the year, director Jeffrey K. Stover said.