Tuesday, April 10, 2012

RailAmerica completes acquisition

Written by  Luther S. Miller, Senior Consulting Editor

Jacksonville, Fla.-based RailAmerica, Inc. announced that it has completed the acquisition of a 20% interest in the Wellsboro & Corning Railroad and Industrial Waste Group from Myles Group for approximately $18 million.

WCOR, based in Exton, Pa., is a 35-mile short line operating between Wellsboro, Pa., and Corning, N.Y., with an interchange at Corning with Norfolk Southern Corp. Its right-of-way traverses across a portion of the Marcellus Shale formation, making the railroad a potentially valuable acquisition for its access to hydraulic fracturing (fracking) operations.

Industrial Waste Group, also based in Exton, Pa., was founded in 1998 to handle scrap steel recycling, and now offers bulk transfer services to various industries in the U.S. 

RailAmerica owns and operates 44 short line and regional railroads in North America, with approximately 7,400 miles of track in 28 U.S. states and three Canadian provinces.