RailAmerica Signs Two Transportation Agreements Valued at $17.8 Million.Business Editors
BOCA RATON Boca Raton (bō`kə rətōn`), city (1990 pop. 61,492), Palm Beach co., SE Fla., on the Atlantic; inc. 1925. Boca Raton is a popular resort and retirement community that experienced significant industrial development in the 1970s and 80s. , Fla.--(BUSINESS WIRE)--May 13, 2003
RailAmerica, Inc. (NYSE NYSE
See: New York Stock Exchange :RRA RRA Registered Record Administrator. ) today announced that its Indiana Southern Railroad The Indiana Southern Railroad (AAR reporting marks ISRR) is a short line or Class III railroad operating in the United States state of Indiana. Indiana Southern Railroad operates 176 miles from Indianapolis to Evansville. (ISRR ISRR International Soundex Reunion Registry
ISRR Indiana Southern Railroad
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ISRR Index of Search and Reunion Resources ) has extended and increased the terms of two existing transportation contracts for an additional $17.8 million of revenue.
The ISRR has extended the terms of its two coal transportation contracts with Hoosier Energy Rural Electric Cooperative, whose member distribution cooperatives provide much of the power on which rural Indiana depends. Under the first agreement, the ISRR will continue to move coal from Black Beauty's Somerville complex to Merom, Indiana, through December 31, 2010. Annual carloads moved under the agreement are expected to increase gradually from 1,500 to 9,000 annually during the period.
The ISRR has amended the terms of its second agreement with Hoosier Energy to transport coal from Horizon's Kindill 2 Mine to Merom through December 31, 2006. This year the ISRR expects to move approximately 2,100 additional carloads from this contract. Starting in 2004, annual carloads are expected to be 13,000.
Harold Leitze, Hoosier Energy's Department Manager of Fuels, said "Hoosier Energy has found ISRR to be customer-oriented and we look forward to continuing our business relationship."
"Indiana Southern is delighted to strengthen its relationship with Hoosier Energy, whose coal shipments to Merom Station are a mainstay of our business," said Charles Fooks, General Manager at the ISRR. "Our dependable, flexible and cost-effective rail transportation is reflected by our high customer loyalty and we continue to win business based on our personalized shipping solutions."
The ISRR, based in Petersburg, Indiana, operates 176 miles of rail line just south of Indianapolis to Evansville, Indiana. The railroad, which moves approximately 66,000 carloads of coal, farm products and chemicals annually, interchanges traffic with partners Indiana Rail Road
The Indiana Rail Road (AAR reporting marks INRD) is a United States Class 2 railroad, originally operating over former former Illinois Central Railroad trackage from Lis, Illinois to , CSX CSX Chessie Seaboard Multiplier (railroad transportation company)
CSX Cayman Islands Stock Exchange
CSX Changsha, China (Airport Code)
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CSX Seaboard Coastline Railroad , Norfolk Southern and Canadian Pacific. RailAmerica acquired the ISRR in early 2000 as part of the RailTex, Inc. acquisition.
RailAmerica, Inc. (NYSE: RRA) is the world's largest short line and regional railroad operator with 49 railroads operating approximately 12,900 miles in the United States, Canada, Australia and Chile. In Australia and Argentina, an additional 4,300 miles are operated under track access arrangements. The Company is a member of the Russell 2000(R) Index. http://www.railamerica.com
DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS: This press release contains forward-looking statements regarding future events and the performance of RailAmerica that involve risks and uncertainties that could cause actual results to differ materially including, but not limited to, fuel costs, foreign currency risks, failure to successfully integrate acquisitions, failure to service debt, failure to successfully market and sell non-operating/non-strategic/non-core properties and assets when scheduled or at all, failure to accomplish new marketing initiatives, economic conditions, customer demand, increased competition in the relevant market, and others. In particular, forward-looking statements regarding earnings and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become of the Company are subject to inherent economic, financial and operating uncertainties, including changes in economic conditions, realization of operating and personnel synergies, the ability to retain key customers and the impact of unforeseen costs and liabilities. Forward-looking statements speak only as of the date the statement was made. The Company assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information. If the Company does update any forward-looking statement, no inference should be drawn that the Company will make additional updates with respect to that statement or any other forward-looking statements. We refer you to the documents that RailAmerica files from time to time with the Securities and Exchange Commission, such as Form 10-K Form 10-K
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See 8-K. , 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.