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 Post subject: Know any railroads for sale or ready to call it quits?
PostPosted: Sun Oct 03, 2010 3:14 am 

Joined: Wed Aug 13, 2008 2:09 am
Posts: 130
Tonight a few of my friends and I were talking about short lines in trouble. And rumors of them being for sale. What have you heard?


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 Post subject: Re: Know any railroads for sale or ready to call it quits?
PostPosted: Sun Oct 03, 2010 9:00 am 

Joined: Wed Oct 22, 2008 8:18 pm
Posts: 2226
Central Illinois closed down, but the shortline traffic is now run by the BNSF, so the customers are getting served.


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 Post subject: Re: Know any railroads for sale or ready to call it quits?
PostPosted: Sun Oct 03, 2010 10:15 am 

Joined: Sun Aug 22, 2004 1:51 pm
Posts: 12151
Location: Somewhere east of Prescott, AZ along the old Santa Fe "Prescott & Eastern"
As a rule, unless you're involved (as a customer, a client, or a shareholder) with the business side of a business, such macabre speculation in a public forum is considered bad form. In extreme cases, half-informed or misinformed speculation along those lines have turned into libel suits. Imagine, for example, that a power plant or refinery wants to set up along a short line or contract with the likes of SMS Services (the Baldwin collectors in NJ). Their business types read all the trash talk about how "they're about to go under" (not that they are, by a long shot, but just sayin') on a forum like this, and all of a sudden they reconsider and head for CSX or Conrail Shared Assets. So much for keeping the Baldwins fed and shiny.......

In theory, however, such speculation could be warranted in the cause of preservation. Say, for example, that you're hoping to acquire a specific piece of rolling stock from the American Orient Express trainset for eventual permanent preservation, or preserve a specific branch line now being operated as a short line. Then, saying "Hey, nothing's been moving over the Pawdunk & Potomac for two years now, ever since that plant gave up the ghost. Is the county going to rail-bank it, or do we start a tourist railroad on it? And what about that old Baldwin they were using? Anyone have dibs on that?" or "Is AOE going to come back or not? We want that diner for our train...." ......... That's not unreasonable.

But the original post, as worded, leaves plenty of opportunity for plain ol' "trash-talking" of the sort that's common all over the place on the web. We should avoid that here.


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 Post subject: Re: Know any railroads for sale or ready to call it quits?
PostPosted: Sun Oct 03, 2010 12:47 pm 

Joined: Sun Aug 22, 2004 7:19 am
Posts: 6464
Location: southeastern USA
On the opposite side of the spectrum, the P&N seems to be gaining life again. It isn't all bad news.

Might try acquiring the Edgemoor and Monetta if you are seeking a nice bit of track.

dave

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“God, the beautiful racket of it all: the sighing and hissing, the rattle and clack of the cars over the rails. These were the sounds that made America the greatest country on earth." Jonathan Evison


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 Post subject: Re: Know any railroads for sale or ready to call it quits?
PostPosted: Sun Oct 03, 2010 1:31 pm 

Joined: Fri Aug 27, 2004 1:19 am
Posts: 153
Location: Lexington, KY
Much of what is left of the Monon in southern IN is either being railbanked or abandoned


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 Post subject: Re: Know any railroads for sale or ready to call it quits?
PostPosted: Sun Oct 03, 2010 8:21 pm 

Joined: Sun Aug 22, 2004 11:26 am
Posts: 4773
Location: Maine
Belfast and Moosehead Lake, in Maine.

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 Post subject: Re: Know any railroads for sale or ready to call it quits?
PostPosted: Sun Oct 03, 2010 9:54 pm 

Joined: Wed Oct 22, 2008 8:18 pm
Posts: 2226
Alexander D. Mitchell IV wrote:
As a rule, unless you're involved (as a customer, a client, or a shareholder) with the business side of a business, such macabre speculation in a public forum is considered bad form. In extreme cases, half-informed or misinformed speculation along those lines have turned into libel suits. Imagine, for example, that a power plant or refinery wants to set up along a short line or contract with the likes of SMS Services (the Baldwin collectors in NJ). Their business types read all the trash talk about how "they're about to go under" (not that they are, by a long shot, but just sayin') on a forum like this, and all of a sudden they reconsider and head for CSX or Conrail Shared Assets. So much for keeping the Baldwins fed and shiny.......

In theory, however, such speculation could be warranted in the cause of preservation. Say, for example, that you're hoping to acquire a specific piece of rolling stock from the American Orient Express trainset for eventual permanent preservation, or preserve a specific branch line now being operated as a short line. Then, saying "Hey, nothing's been moving over the Pawdunk & Potomac for two years now, ever since that plant gave up the ghost. Is the county going to rail-bank it, or do we start a tourist railroad on it? And what about that old Baldwin they were using? Anyone have dibs on that?" or "Is AOE going to come back or not? We want that diner for our train...." ......... That's not unreasonable.

But the original post, as worded, leaves plenty of opportunity for plain ol' "trash-talking" of the sort that's common all over the place on the web. We should avoid that here.



We've seen the abandonment of raillines since the start of the end of the interurbans. Buying working any railline takes huge investments and its serious business work. Lawsuits have tho not been unsual in the railbiz simply to iron out issues of say like 2 rail lines crossing to iron out who does who what.
Today we have seen some resurgence of rail lines, some cities looking to bring back Light Rail, and so on. The original post is more like a gossip whats goin on out there.
Perhaps we can help guide potential operators a direction. When some Major mainlines are abandoned by the Big Roads some small shortline operators have stepped in and made those former lines a feasable operation.


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 Post subject: Re: Know any railroads for sale or ready to call it quits?
PostPosted: Mon Oct 04, 2010 1:08 am 

Joined: Sun Oct 19, 2008 12:58 pm
Posts: 1352
Location: Chicago USA
I was under the impression that CIRY only discontinued its operations over about 6 route miles in and around Chicago, not its Peoria-area operations.

Steve


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 Post subject: Re: Know any railroads for sale or ready to call it quits?
PostPosted: Mon Oct 04, 2010 12:15 pm 

Joined: Wed Aug 13, 2008 2:09 am
Posts: 130
Richard Glueck wrote:
Belfast and Moosehead Lake, in Maine.

Richard, I just picked up the phone and called a friend with the Belfast and Moosehead Lake. I was told they had a pretty good year, and they're looking forward to running next year. I guess in my post I should have worded it "Railroads for sale or have already completely quit all operations." Of course anyone planning to use a railroads services (for example going on vacation to ride trains) should always call first for last minute details and information. The internet can be out of date or wrong, or have mistakes as you know.


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 Post subject: Re: Know any railroads for sale or ready to call it quits?
PostPosted: Mon Oct 04, 2010 12:30 pm 

Joined: Wed Aug 13, 2008 2:09 am
Posts: 130
filmteknik wrote:
I was under the impression that CIRY only discontinued its operations over about 6 route miles in and around Chicago, not its Peoria-area operations.

Steve

There are articles on line from news services you can check. Always have more than one source of information.


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 Post subject: Re: Know any railroads for sale or ready to call it quits?
PostPosted: Mon Oct 04, 2010 8:31 pm 

Joined: Sun Aug 22, 2004 5:55 pm
Posts: 1109
Location: Warren, PA
You don't need to speculate, all you need to do is read.

Freight railroads must file for abandonment and the filings are publicly visible at www.stb.gov That's where all activity starts on the legal side. If you want in, the owner has to be paid for the value of the property and land as a financially responsible party in the eyes of the STB - and if the buyer and seller can't come to an agreement the STB will set the price.

Publicly-owned track with operators usually advertise as a Request for Proposals, and those usually appear on the ASLRRA newletter and other sources. Tourist railroads that are not common carriers usually show up on TRAINLINE, and sometimes advertise in magazines and classified ads, even here.

Private concerns - for profit - that are simply ready to sell out are under no obligation to do anything except notify the STB about a change in ownership, particularly when it is railroad to railroad. That's a pure business decision, usually done through personal and professional links. There's a lot of that going on, and it is usually valued as a going concern - not net liquidation value.

If you're serious, our company does this as normal business, and setting up new lines and operators is a prime function. We're proud of our record, and I'm also proud of the times that we've looked at a situation with a client and told them, in clear language, to simply run in the opposite direction.

But no, this is not the place for speculation.


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 Post subject: Re: Know any railroads for sale or ready to call it quits?
PostPosted: Mon Oct 04, 2010 10:54 pm 

Joined: Wed Oct 22, 2008 8:18 pm
Posts: 2226
How Sam Insull bought the CLS&SB, you couldn't have an inside private deal.
If I recall the story right, a newspaper had to carry an announcement about sale of the CLS&SB, and Insull and the selling parties and any intermediaries met outside in Michigan City in a publicly open sale. Well, Insull the only buyer there because no one else showed, the rest is history.

It would be hard for any rail line to up and quit operations without approval without submitting request for abandonement, or sale. There are people/businesses who rely on the line. So you are going to have public notices about abandonement etc and see if someone/something can rally, buy the line or users make alternative solutions to their operations before the line goes all out defunct/sold, whatever.


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 Post subject: Re: Know any railroads for sale or ready to call it quits?
PostPosted: Tue Oct 05, 2010 2:59 am 

Joined: Thu Nov 22, 2007 5:46 am
Posts: 2611
Location: S.F. Bay Area
Coe Rail/Michigan Air Line in Walled Lake, Michigan has pretty much thrown in the towel. They're moving the trains out, liquidating the property there, and it'll probably be a bike path by 2012. Interested? It's a heck of a location for a train ride, right in a rapidly growing suburb area. You could probably even make a win/win with the bike path by letting them use the edge of the property.


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 Post subject: Re: Know any railroads for sale or ready to call it quits?
PostPosted: Tue Oct 05, 2010 8:25 am 

Joined: Sun Aug 22, 2004 5:55 pm
Posts: 1109
Location: Warren, PA
Like I said, its a matter of public record - here's the issue mentioned above:

http://docs.stb.dot.gov/?sGet&Dl5cTH1WX ... ME0wOAw%3D

Now that was posted in July, so the clock has already about run out. Haven't done any in-depth searches to see if any OFA's have been filed, but there again, it's a matter of public record.

Notice however, that it's only 2.37 miles of track shown.


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 Post subject: Re: Know any railroads for sale or ready to call it quits?
PostPosted: Wed Oct 06, 2010 1:28 am 

Joined: Mon Aug 23, 2004 10:49 am
Posts: 773
I've got a railroad in mind...anybody have info on financing?


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