Thursday, May 29, 2014

OmniTRAX acquires Sand Springs Railway Co.

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OmniTRAX announced Wednesday, May 28, 2014 that it is acquiring Sand Springs Railway Co., a 32-mile short line linking the railroad's namesake Oklahoma city with Tulsa, Okla.

Sand Springs Holdings, LLC, a managed affiliate of OmniTRAX, Inc., will commence operations on the route no later than July 31, 2014. Terms of the deal were not disclosed.

Sand Springs Railway has direct connections with Union Pacific, BNSF, and South Kansas Oklahoma Railroad. Traffic handled includes steel, pulpboard, scrap iron, scrap paper, petroleum products, plastics and lumber. Key customers of Sand Springs Railway Co. include Yaffe Metals, Baker Petrolite, Webco Industries, and Ranger Steel, OmniTRAX said.

"We are excited to be in Oklahoma and involved with a market that shows such great potential for growth. The Sand Springs Railway has a great customer base and we are committed to providing the resources to quickly act on new opportunities there," said Kevin Shuba, CEO of OmniTRAX.

As part of the deal, OmniTRAX Logistics Services, the company's transloading unit, is leasing 100,000 square feet of covered warehouse space with heavy lift equipment to serve steel and building products shippers throughout the greater Tulsa area and wider Oklahoma markets.