USA: RJ Corman Railroad Group has finalised an agreement to acquire three short lines and a transloading company from Steve May, subject to customary regulatory approvals.
The 43 km Owego & Harford Railway in New York state operates on a long-term lease from Tioga County Industrial Development Agency. The Lehigh Railway operates on 90 km of track in Pennsylvania owned by Norfolk Southern, and the Luzerne & Susquehanna Railway in the same state has around 100 km of track leased from Luzerne County Redevelopment Corp under a multi-year operating agreement. TranZ operates a bulk transfer station on the Lehigh Railway in Wyalusing.
The three railways carry more than 14 000 wagonloads a year, interchanging with Norfolk Southern and the Reading Blue Mountain & Northern Railroad. Traffic includes sand, drill cuttings, scrap, feed products, fertiliser, pipes, plastic, propane, chemicals and wood products.
‘What Steve May and his team have built through their invaluable partnership with Tioga County Industrial Development Agency, Luzerne County Redevelopment Corporation and Norfolk Southern is extremely impressive’, said Ed Quinn, President and CEO of RJ Corman Railroad Group on August 19.
‘We’re excited to bring these short lines and related companies into the RJ Corman family of companies and to continue the impeccable service they are known for by their customers. Over the past 18 months RJ Corman has positioned itself well to make strategic acquisitions to grow our presence in the short line railroad industry, and we’re grateful to Steve May for entrusting us to bring these remarkable operations under the RJ Corman banner.’
May said he had spent the majority of his 48 years in the rail industry building this group of companies, and their sale would be the ‘the most beneficial for my family, our investors and the employees of my companies’ as he looked forward to ‘pursuing some new challenges and spending some more time with my family’.