Genesee & Wyoming leases two short lines
USA: Genesee & Wyoming Inc subsidiaries Toledo, Peoria & Western Railway Corp and Central Railroad Co of Indianapolis commenced operations on the Winamac Southern Railway and the Kokomo Railroad in Indiana under long-term lease agreements on March 22. Terms were not disclosed.
The two lines totalling 90 km are being operated with five staff and two locomotives. They are expected to handle approximately 5 000 wagon loads per year, primarily agricultural products, chemicals and plastics and metals. They share common ownership with Kokomo Grain Co, a major customer of WSRY and the only customer of KR.
In combination with G&W’s Illinois & Midland and Tazewell & Peoria railways, they provide a contiguous 600 km route from eastern Indiana to western Illinois with connections to six Class I railways.
‘Since acquiring CERA and TPW in 2012, we have worked hard to repair their relationship with Kokomo Grain, and these long-term leases of WSRY and KR are a direct result of those efforts’, said G&W Senior Vice-President Martin Pohlod. ‘We’re planning immediate upgrades to the WSRY and KR lines to support the business and further enhance our customers’ routing options, interchange locations and geographic reach through G&W’s footprint of contiguous railroads.’