Printer Friendly

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), a business unit of CSX Corporation (NYSE: CSX), 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 will commence rail service on this line immediately. This transaction increases RailAmerica's total trackage 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, 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), 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 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

To receive CSXT's latest news releases and other documents, access CSX Transportation's Website at

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-Q and Form 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
COPYRIGHT 1998 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1998, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Apr 30, 1998
Previous Article:Virtual Knowledge Becomes Fastest Growing Educational Software Publisher.
Next Article:Polydex Pharmaceuticals Reports Higher Margined Products Led Earnings Advance in Fiscal Year; Polydex profitable for second consecutive year.

Related Articles
RailAmerica Inc. warrant registration statement declared effective.
RailAmerica subsidiary contracts for management services.
RailAmerica subsidiary contracts for management services.
RailAmerica Inc. announces record revenues and income for the second quarter and six months.
RailAmerica executes agreement to acquire Dakota Rail.
RailAmerica Inc. completes Dakota Rail acquisition.
W. Graham Claytor III joins RailAmerica Inc. as senior vice president - Rail Acquisition and Development.
First American Railways signs trackage agreement with Florida Department of Transportation.
CSX files operating plan for integrating Conrail lines.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters