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U.S. GROUP TO OPERATE 3,055-MILE ARGENTINA RAIL LINE

 U.S. GROUP TO OPERATE 3,055-MILE ARGENTINA RAIL LINE


Anacostia & Pacific Company, Montana Rail Link, RBC Associates awarded
 30-Year Concession to Run Mitre Line
 NEW YORK, Jan. 15 /PRNewswire/ -- Anacostia & Pacific Company, Inc.,


New York, said today that it is one of three U.S. firms awarded a 30-year concession by the government of Argentina to organize, manage and privately operate 3,055 miles of national railroad, known as the Mitre Line. Final approval by the Argentina legislatures is expected shortly. Other U.S. participants include Montana Rail Link, Inc., a 900-mile regional railroad based in Missoula, Mont., and RBC Associates, Inc., a Washington, D.C. lobbying firm specializing in transportation policy matters.
 The line will be operated by Nuevo Central Argentino (NCA), a consortium formed by four Argentine companies in which the three U.S. firms will be investors. The transaction is expected to be completed in August, 1992.
 The Mitre Line includes wide-gauge (5'6") main-line track serving the country's rich agricultural region from Buenos Aires northwest to the principal industrial cities of Rosario and Cordoba, as well as Santa Fe and Tucuman. This is the second of Argentina's six government- owned rail systems to be privatized.
 Under terms of the concession, NCA will operate and maintain the railroad in return for an annual rental payment. Inter-city and commuter passenger service on the Mitre Line will be retained by Ferrocarriles Argentinos, Argentina's national railroad, through trackage rights.
 NCA expects revenues of more than $40 million in its first year of operation and to employ 2,200 people. Annual volume should exceed 60,000 carloads consisting primarily of grains, oil seeds, oil seed products, aggregates, minerals and sugar.
 Larry McCaffrey, a managing director of Anacostia & Pacific, said, "This is an important opportunity for us to demonstrate the value of U.S. management, business principles and operating systems in the process of converting government-owned railroads into privately run operations, something that is occurring throughout the world."
 The three U.S. firms have given NCA a 30-year commitment to provide railroad management services. This includes selection of four senior U.S. railroad managers for the new railroad, training of senior Argentine managers at Montana Rail Link facilities in the U.S., preparation of start-up and capital investment plans and monitoring continuing operations.
 NCA plans to make substantial capital investments in the new enterprise, including 25 rebuilt locomotives, track improvements and replacement of the railroad's signaling and computer systems. A substantial number of rebuilt locomotives are expected to be supplied by a Montana Rail Link affiliate: Livingston Rebuild Center, Livingston, Mont.
 McCaffrey said, "There will be a five-year rebuilding period during which NCA facilities and operations will be brought to U.S. railroad standards. After that, we expect NCA to operate with the same efficiencies and high service standards that are being achieved on the best of U.S. railroads."
 In addition to management services, Anacostia & Pacific and the other U.S. firms plan to make "significant investments" in the NCA consortium, McCaffrey said. Anacostia & Pacific has also participated in the formation of the Chicago SouthShore & South Bend Railroad, Kiamichi Railroad, MidSouth Corporation, Montana Rail Link and Otter Tail Valley Railroad.
 U.S. involvement in the Mitre Line bid was initiated by Anacostia & Pacific Company, Inc., a New York and Chicago-based transportation management and investment firm, with the participation of RBC Associates, Inc.
 -0- 1/15/92
 /CONTACT: Larry McCaffrey of Anacostia & Pacific Company, 212-765-5400/ CO: Anacostia & Pacific Company, Inc. ST: New York IN: TRN SU:


KH -- MN002 -- 9900 01/15/92 10:19 EST
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Date:Jan 15, 1992
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