Iowa Pacific Buys Texas State RR

Alexander D. Mitchell IV · **Posted:** Wed Aug 08, 2012 10:13 pm

I'm not sure exactly what I'm supposed to think about this. Bizarrely, this came to me earlier today through, of all places, the weekday Association of American RRs Newsbrief:

http://www.tylerpaper.com/article/20120 ... 1/0/Search

Quote:

The sale of the Texas State Railroad was completed today, according to a news release from Iowa Pacific Holdings, which is taking over the operation from American Heritage Railways.

Ed Ellis, president of Iowa Pacific, in a prepared statement said, “We are very excited about this opportunity to build on the substantial achievements that American Heritage has made, in cooperation with the Texas State Railroad Authority, in improving the Texas State Railroad's infrastructure and in developing the tourist ridership. We are already taking steps to continue this progress by further developing passenger services, reconnecting the railroad with the national rail network at Palestine, and implementing freight service.”

More at the link.

Frisco1522 · **Posted:** Wed Aug 08, 2012 10:26 pm

I think it's good news for the TSRR.

junior · **Posted:** Wed Aug 08, 2012 10:32 pm

Maybe they will tone down the rather gaudy paint jobs on the Steam Loco(s).... I like the red coaches, but that boiler just is not right!

Yes, I know the Parks Department wanted it that way....doesn't mean its "right"...lol

ekrwy2 · **Joined:** Sat Jul 16, 2011 3:12 pm **Posts:** 121

This will be good for all parties. Local businesses and tourism. I like it.

AlcoC420 · **Joined:** Wed Dec 15, 2010 8:17 pm **Posts:** 270

I doubt that we will know what it sold for, but since it was owned by the State of Texas it should be public. I also find it hard to believe that the state would not have to take bids. Was there any public bidding process?

This may be good for all parties, but the Texas State Railroad had to be worth a lot of money, track, equipment, etc.

I know Ed Ellis has taken on quite a few recent new operations, but the Texas State Railroad has been bleeding red for several years. How can anyone pay a large amount for a loosing property by taking on the large debt load and come out on this?

There come a point of how much you can operate and really do the job right.

Steve Freer · **Joined:** Tue Nov 09, 2004 1:24 pm **Posts:** 380

Alexander D. Mitchell IV wrote:

I'm not sure exactly what I'm supposed to think about this.

I think the inflection is incorrect. I believe Iowa Pacific is assuming operations, not ownership. My understanding is that the railroad remains a State property. AHR was operating under a lease agreement. No?

More info: http://jacksonvilleprogress.com/local/x1962242666/Texas-State-Railroad-Transfer-Complete

SCVR · **Posted:** Thu Aug 09, 2012 11:32 am

I'm glad they took over operations. The question I had was, is there any possibility of certain locomotives leaving to operate elsewhere on other Iowa Pacific Railroads? The rio Grande Scenic comes to mind but with #18, 1744 and #20 to be all operable within many years, I doubt they need anymore steam.

Rob Gardner · **Joined:** Sat Aug 21, 2004 10:50 pm **Posts:** 576

SCVR, I wouldn't expect any TSRR rolling stock or motive power to leave the property as it still remains the property of the state of Texas. Other Iowa Pacific stock coming to TSRR, now that's an entirely different story!

elueck · **Posted:** Thu Aug 09, 2012 11:11 pm

As was stated earlier, Iowa Pacific basically took over the existing lease of the TSR from American Heritage Railways. The locomotives and cars all belong to the State of Texas, so the possibility of them leaving for other locations is next to nil. I believe that IP does have plans to repaint, reletter and renumber the locomotives back to their former owners and numbers, so the days of blue, red and green locomotives are probably gone (thank goodness). IP has made no secret of the fact that it is working with several local businesses who have indicated a desire to ship by rail, and is also working to attract other businesses to the area who would be served by the railroad.

There is no question that IP will have an uphill battle to stem the tide of red ink that has hemorrhaged out of the TSR in recent years but from what I have read, Ed Ellis and Earl Knoob bring a much more down to earth look at things and have gotten more local support than AHR had.

Bobharbison · **Joined:** Fri Dec 03, 2004 9:42 pm **Posts:** 3011

Here's the Press Release:

Quote:

Texas State Railroad acquired by Iowa Pacific Holdings, LLC

PALESTINE, August 7, 2012--Iowa Pacific Holdings, LLC and American Heritage Railways, Inc. today announced the completion of a transaction in which Iowa Pacific has acquired American Heritage Railway of Texas LLC (AHRT), which operates the Texas State Railroad between Palestine and Rusk, under a contractual agreement with the Texas State Railroad Authority, from American Heritage.

Ed Ellis, president of Iowa Pacific, said “We are very excited about this opportunity to build on the substantial achievements that American Heritage has made, in cooperation with the Texas State Railroad Authority, in improving the Texas State Railroad’s infrastructure and in developing the tourist ridership. We are already taking steps to continue this progress by further developing passenger services, reconnecting the railroad with the national rail network at Palestine, and implementing freight service.

Allen Harper, chief executive officer of American Heritage Railways, Inc., stated “We have had a tremendous experience developing the Texas State Railroad, and appreciate all the assistance we have enjoyed from the Texas State Railroad Authority and from local communities and supporters in this process.”

The president of the Texas State Railroad Authority, Steve Presley, said “We are genuinely excited about the opportunities this creates for the only historic steam railroad in Texas. In addition to creating tourism for local communities, the planned restoration of freight service will aid industrial development and employment growth. We look forward to working with Iowa Pacific to achieve these goals.”

As part of the transaction, American Heritage Railway of Texas LLC will be renamed Rusk, Palestine and Pacific Railroad LLC, although it will continue doing business as the Texas State Railroad.

Iowa Pacific operates six short line railroads in the U.S. and, through an affiliated company, operates three railways and related businesses in the United Kingdom. American Heritage Railways operates three railroads in the U.S. and one railroad in Mexico.

co614 · **Posted:** Fri Aug 10, 2012 8:58 am

With all due respect to Al Harper bringing IP to the plate is a smart move and if anyone can make the Texas operation a success it's Ed Ellis and his proven team of innovators.

I wish them every success and hope they can make it a winner.

Ross Rowland

Dave Crosby · **Posted:** Fri Aug 10, 2012 10:08 am

Yea, what Ross said...

Having several friends on the Saratoga & North Creek and having recently ridden and photographed the Rio Grande Scenic RR out of Alamosa, I can say that the Iowa Pacific trains are top notch. They aren't afraid to try new ideas and think "outside of the box".

Watching and listening to the well-timed 2-8-0 attack LaVeta Pass spoke volumes about the crew in Colorado.

http://www.railpictures.net/viewphoto.php?id=405210&nseq=0

By contrast, I was in Texas for several days on the same trip and with only one weekly excursion at 4pm on a Saturdays, I couldn't swing a visit. I don't know how anyone could expect to survive running that kind of schedule.

Dave Crosby

SCVR · **Posted:** Fri Aug 10, 2012 11:25 am

I don't see why all you guys hate the unusual colors. Okay so red and green and blue aren't very practical but not ever steam engine has to be black! I also like R&N 425 in her blue scheme! Also 4449 and the southern crescents. I'd want #500 to stay green, as for #300 I kind of like her red scheme. I think it gives the locomotives character, so if #300 went black I wouldn't complain but if all of them did then yes I would.

filmteknik · **Posted:** Fri Aug 10, 2012 11:29 am

So the Illinois Central finally makes it to Texas. LOL :P

Steve

Frisco1522 · **Posted:** Fri Aug 10, 2012 9:58 pm

I see nothing but good coming from Mr. Ellis and Mr. Knoob. Good people, good sense and innovative.
It's too bad Paulson Spence's collection was scrapped some years ago or I'll bet you would see some IC in Texas.
The sooner the circus train paint schemes are gone, the better.
What is the status of the ATSF 4-6-2?
Wish it were closer and I still had my ticket.