RailAmerica, Inc. Subsidiary Purchases Michigan Rail Line From CSXT.BOCA RATON and JACKSONVILLE, Fla.--(BUSINESS WIRE)--April 30, 1998--RailAmerica, Inc. (Nasdaq/NNM: RAIL) and CSX Transportation Inc. (CSXT CSXT Civilian Space Exploration TeamCSXT Chessie System Railway and Seaboard Coast Line Railroad Transportation (Jacksonville, FL, USA) ), a business unit of CSX Corporation (NYSE NYSE See: New York Stock Exchange : CSX CSX Chessie Seaboard Multiplier (railroad transportation company) CSX Cayman Islands Stock Exchange CSX Changsha, China (Airport Code) CSX Cardiac-Specific Homeobox CSX Seaboard Coastline Railroad ), today announced that CSXT has sold a 51 mile rail line in Michigan to RailAmerica's wholly-owned subsidiary, the Saginaw Valley Railway Company (SGVY SGVY Sparkling Generation Valkyrie Yuuki (magical girl webcomic) SGVY Saginaw Valley Railway ). SGVY will commence rail service on this line immediately. This transaction increases RailAmerica's total trackage track·age n. 1. Railway tracks. 2. a. The right of one railroad company to use the track system of another. b. The charge for this right. operated by its two railroads in Michigan to over 225 miles. Terms of the sale were not disclosed. Located in Michigan's "Thumb" region, the line runs from just east of Saginaw to Brown City, Michigan Brown City is a city in Sanilac County in the U.S. state of Michigan. The population was 1,334 at the 2000 census. The city is located on the border with Lapeer County and a small portion of the urban area is within that county. , and serves customers such as Parrish & Heimbecker, Michigan Agricultural Commodities, Terra International and Star of the West Milling. SGVY anticipates moving several thousand carloads of commodities annually over the line, including agricultural products such as grain, corn, fertilizer and soybeans. The line, which will be known as SGVY's Brown City Subdivision, connects with RailAmerica's flagship railroad and SGVY's sister railroad, the Huron and Eastern Railway Company (HESR HESR High Energy Storage Ring HESR Huron & Eastern Railway HESR Harris Extremely Sensitive Receiver ), at Vassar, Michigan. SGVY will also interchange with CSXT at Saginaw. Customer service and train dispatching for this line will be coordinated through RailAmerica's new regional transportation office and centralized dispatching center in Vassar. RailAmerica, Inc. Chairman, President and C.E.O. Gary O. Marino said, "We are excited to add this rail line to our Michigan cluster of railroads. Now new customers on this line will enjoy the benefits of RailAmerica's personalized, frequent rail service, while also maintaining access to a national rail network that makes these shippers more competitive in the world marketplace." James Derwin, CSXT's Assistant Vice President Asset Management added, "We are pleased to expand our relationship with RailAmerica, and in Michigan in particular, where we interchange numerous products with their railroads. CSXT and its customers have benefited from the local focus and attention to service that short line operators like RailAmerica provide, while at the same time maintaining a valuable feeder network to the national rail system." RailAmerica, Inc. is a diversified international transportation holding company operating 11 railroads over approximately 2,450 route miles in seven U.S. states and the Republic of Chile. The Company holds a minority equity interest in the Great Southern Railway Limited consortium which operates the 4,000 mile transcontinental Australian passenger rail service. The Company also owns Kalyn/Siebert, Inc., a specialty truck trailer manufacturer with production facilities in Gatesville, Texas and Trois-Rivieres, Quebec, Canada. CSX Transportation provides rail transportation and distribution services over an 18,300 route-mile network in 20 states, the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). and Ontario, Canada. CSXT is a business unit of CSX Corporation, headquartered in Richmond, Virginia. -0- To receive RailAmerica's latest news releases and other corporate documents, access RailAmerica's Website at www.railamerica.com. To receive CSXT's latest news releases and other documents, access CSX Transportation's Website at www.csxt.com. This press release contains forward-looking statements regarding future events and the future performance of RailAmerica that involve risks and uncertainties that could cause actual results to differ materially including, but not limited to, economic conditions, customer demand, increased competition in the relevant market, and others. We refer you to the documents that RailAmerica files from time to time with the Securities and Exchange Commission, such as the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , Form 10-Q Form 10-Q See 10-Q. and Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. reports, which contain additional important factors that could cause its actual results to differ from its current expectations and from the forward-looking statements contained in this press release. CONTACT: RailAmerica Wayne A. August, 561/994-6015 CSX Transportation Robert L. Gould, 904/366-2949 |
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