Private equity funds and other investors are scouring 35, miles of North American short-line rail track for deals even as the industry sees one of the biggest volume drops since The hunt for acquisitions among the roughly companies in the space comes as investors see first-mile access to shippers as the next smart way to deploy large pools of capital and the demand for railcar storage increases. Below that mega-deal, there are a host of smaller ones.
A bit over half of those deals occurred this year. In October, U. Regional Rail is the parent company of three short-line railroads spanning Pennsylvania and New Jersey, covering miles of track.
In Maya group including Related Companies, Brookhaven Capital Partners and investment bank Stephens, acquired Pioneer Railcorp, the owner of 15 short-lines covering 12 states.
RailUSA Chief Executive Gary Marino cited the potential to get closer to customers and the ability to offer railcar storage as keys to the acquisition. And it can continue to gain market share from trucks. Part of the reason for the deal binge is that infrastructure funds are flush right now. The promise of steady free cash flows from the long-term customer contracts that short-lines typically have make them a good candidate for those funds, Shuba said.
In some cases, short-lines are the result of trackage that the Class 1 railroads deemed as low profit or requiring too much service. But short-lines are making a business case for high-touch customer service, which is seen as lacking among the Class 1 railroads in the age of precision scheduled railroading, Shuba said.
While railcar storage is not a big earner for short-lines, Baker said it does offer another revenue stream for the companies. Along with buyouts, private equity is providing a source of growth capital for short-lines or for specific projects. Private equity owners also benefit from an array of federal and state grants aimed at increasing rail access. Department of Transportation grant along with Mississippi state funding.
Baker said New York, Oregon, Pennsylvania and Virginia have also been standouts for state support of short-lines. Short-lines can also tap the U.
Baker said those investments benefit the entire rail industry in the long-run. In the face of a likely coronavirus-fueled recession, short-line railroads offer investors a certain sense of security.
FreightWaves Staff. Related Articles. Real Estate Roundup: Warehouse and distribution demand soars; so does community opposition Friday, October 2, Surviving supply chain disruptions requires good communication, nimble thinking with video Wednesday, September 16, Port of LA leader calls for industrywide digital transformation with video Wednesday, September 16, Facebook Twitter LinkedIn.
Close Search for.New England Southern, a year-old, mile short line, operates in the Concord, N. It is the second time a sale of the railroad has been announced in little more than a year; a purchase in February by United Rail Inc. Phil Murphy has withdrawn the names of two nominees for the NJ Transit Board of Directors, days before they were to appear before the state Senate judiciary committee.
Both were to appear before the committee on Monday. A spokesman for the governor declined comment. State Sen. The affected employees have the opportunity to transfer to open positions elsewhere, BNSF spokeswoman Amy McBeth told the newspaper, with some able to exercise seniority under collective bargaining agreements.
Connect with us! Sign up for our email newsletter. Login or Register Customer Service. COM Enter keywords or a search phrase below: Search. Why Join? Analysis: Amtrak triweeklies, with smaller consists, see sellouts, high fares. Digest: Canada to require new switching rules after fatal accident updated. Adventures and misadventures on the road.
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Want to leave a comment? Only registered members of TrainsMag. Registration is FREE and only takes a couple minutes. Login or Register now. Please keep your feedback on-topic and respectful. Trains staffers reserve the right to edit or delete any comments.There's still time to register - Click here to learn more! Click here to prepare! For large areas of rural and small town America, short line and regional railroads are the only way shippers can stay connected to the national network, helping businesses and employment stay local.
Rail movement is efficient and cost effective, enabling competitive access to the national and world economy for thousands of companies. One of every four rail cars moving on the national network is handled by a short line, providing the first and last mile for a wide variety of goods from energy products, to industrial products, to finished consumer goods.
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Current Industry Issues Helping you to keep ahead of the curve on the regulatory and legislative fronts. Quick Links for.Skip to main content. Short Lines and Regional Railroads. In-depth news coverage of the short line railroad shipping industry. More Webcasts. Outdated and unfair regulations leave shippers with no choice but to pay the excessive rates of their sole railroad. White Papers. Supply chain management software for resiliency and insight.
More Whitepapers. New Orleans port improves rail flow as traffic jumps. The Port of New Orleans says the integration of the New Orleans Public Belt Railroad into the port provides shippers with a one-stop solution that can offer a more fluid way to move their cargo. Shippers eye ocean transport as US-Mexico tensions rise. US railroads and safety advocates are united in opposition to allowing the new, longer twin foot trailers, while the trucking industry is split.
Still, the players pushing for the change are large, well-financed, and politically savvy. The current truck driver shortage lends more credibility to their argument. US Southeast shippers grapple with post-Irma rail delays. Primary rail providers have said they are metering cargo even for routes that are operating normally.
Shortline, port operators are owned by the same investment group. Terms of the joint venture were not disclosed. New Orleans port moves closer to wharves-for-railroad swap. New Orleans port to take over switching railroad.
The future of the New Orleans Public Belt Railroad has been a top concern of port officials and businesses for nearly two years. Five companies bid for New Orleans port switching railroad. City officials move forward with a concession agreement that port businesses oppose. The acquisition, announced Tuesday, must still pass muster with regulators in the United States and Mexico.
Off-dock yard could speed truck turns at Miami port.
No sale for New Orleans port railroad. North America intermodal forecast gives rails hope. North American intermodal volume growth accelerated in the first quarter of US mid-Atlantic, Northeast cargo delays linger after winter storm. Shippers across the U. Florida East Coast Railway expands next-day intermodal service. The weekend service will help retailers replenish shelves before Mondays.
Portal allows Florida East Coast Railway shipper to track containers. US short line acquires largest UK container on rail firm.
Privatization proposed for New Orleans switching railroad. NS could improve Northeast intermodal service via proposed acquisition. Florida East Coast Railway boosts intermodal capacity.Skip to content.
Vermont Rail System acquires New Hampshire short line (corrected)
Homestead News. September 9, Tuesday Sept 8 saw the installation of the unloading pit for Transload Facility in Milford. Conveyor installation coming soon. August 3, Several loads of conveyors and unloading equipment have arrived for installation.
Unloading activity taking place at BZak Landscaping will transfer to this new facility soon. June 8, Cincinnati Eastern has broken ground on a new transload terminal in Milford OH. This will be a full service terminal with truck scales and is a replacement for our current transloading operations. March 24, December 10, September 30, Garick is a leading distributor and processor of renewable and sustainable natural resource products in the United States and Canada, servicing the landscape, recreation, lawn, garden, and construction markets.
Short Lines and Regional Railroads
With 8 processing facilities, and over 40 independent copackers, terminals and ports located throughout the United States, Garick has the capability to supply a complete range of products in bags, bulk, or barges throughout North America.
September 25, Carmel Stabilization Group, Inc. The company offers soil drying, soil modification, full depth reclamation, asphalt pulverization, bentonite lining, and frozen coal pulverization services.
They are one of our newest customers, receiving raw material by rail. Pavestone Company, LLC manufactures and distributes segmental concrete products for commercial, residential, contractor, industrial, and retail consumer markets. The company offers stone and concrete brick paving products, including concrete pavers, patio stones, retaining and freestanding wall systems, concrete edging, and landscape accessories. Its accessories include landscape rock, sealers and cleaners, vinyl edging and plastic edging, geosynthetic reinforcement, landscape fabrics, wall adhesives, soil amendments, and paver accessories, as well as joint, base, and play sand.
The company also provides driveway, pathway, patio, wall, step, terrace, pool deck, and commercial design ideas; stone fireplaces and fire pits for outdoor living space; and how to guides for installing pavers, landscape rock, and landscape edging, as well as building retaining walls, patios, and rumblestones.
It offers its products through retailers, distributors, and dealers in the United States.Our full 2018 predictions social media predictions report includes input from experts like Mike Stelzner (Social Media Examiner), Gini Dietrich (Spin Sucks) and Matt Navarra (The Next Web). The must-read news, updates, and insights into all things social media marketing.
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CME Group launching Bitcoin futures will be. The price was mostly bouncing between the 280 and 312 USD level. For Cryptocurrencies in general. It has been now more than 24 hours after the successful upgrade. So far, Ethereum price is holding around the 325 USD area after touching 350 USD around the fork time.
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Short-line railroads offer an appealing investment opportunity even amid pandemic
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