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from all over the region. Ethanol will be shipped out by rail to markets around the country. The Burlington Junction Railway was chartered in 1985, and op- erates switching services in Iowa, Illi- nois, and Missouri.—O.M.V.
Apache Railway on The Ropes
Since Catalyst Paper Industries shut down its paper mill just outside of Snowflake, Ariz., in 2012, the venerable Apache Railway has been struggling to survive. Prior to the shutdown, Apache Railway was handling 13,000 carloads annually. The only remaining regular online customer is Pigs for Farmer John, which receives about 1000 annual carloads of feed. When Hackman Capital Partners
of Los Angeles purchased the mill and the railroad, the Snowflake Community Association negotiated with the new owners to preserve the railroad and provide an interim loan until a new operator could found. Efforts to find long-term financing
ran into roadblocks from both the FRA and local political opponents. While the Apache Railway has found other sources of income including car storage and contract railcar repair, the efforts to secure funding to pay off the loan and purchase the railroad from Hackman continue. Investors have grown impatient and attempted to foreclose on the railroad property in May. In arguments before the court, lawyers for SCF presented a pending U.S. Department of Agriculture loan as one reason to delay liquidation. The purchase price of the railroad is $7 million, but Hackman estimates the sal-
vage value to be anywhere from $9 mil- lion to $14 million. A final decision on the USDA loan is expected at the end of this month. —O.M.V.
UTLX Expansion in Iowa
Union Tank Car Company announced the expansion of its Muscatine, Iowa, facility on July 23, in a groundbreak- ing ceremony attended by local officials. According to a report in the Muscatine Journal, the $1.9 million expansion will give UTLX a new location for its valve and fittings operations. Up to 25 new positions will be added to the cur- rent workforce of 127. The facility also cleans and repairs tank cars, including interior coatings. The expanded facili- ty is expected to open by the end of the year. Chicago-based UTLX is one of the largest domestic railcar manufacturers specializing in tank cars and covered hoppers.—O.M.V.
Grenada Railway to Iowa Pacifi c
Iowa Pacific Holdings signed a 15-year lease agreement on July 30 with the North Central Mississippi Regional Railroad Authority (NCMRRA) to operate the Grenada Railway. The 187- mile railway runs between Southaven and Canton, Miss., and includes the 11- mile Water Valley Branch. Interchange is with Canadian Nationall at Canton. The former Illinois Central route
at one time hosted the line’s premier passenger trains. Amtrak diverted the City of New Orleans to a new route in 1995, and in 1998 CN acquired Illinois Central. Sold to V&S Railway in 2009, they operated the segment as the
Grenada Railway. In 2013, the company filed for abandonment, citing dwindling traffic levels and deteriorating track conditions. In 2014, the state legislature authorized NCMRRA to issue $30 million in bonds to finance purchase of the railroad. According to a late-June filing with the Surface Transportation Board, the Grenada Railway will be operated by IHP subsidiary Illinois Company Rail Road. —O.M.V.
REGIONALS/SHORTLINES EAST STEPHEN KOENIG
Buffalo Southern
Work continues on Buffalo Southern’s Alco C424 No. 4212 at the Hamburg, N.Y., shops. In June, for the first time in 16 years, the 4212’s prime mover was turned over and run. The railroad also secured a new motor for its 45-tonner as- signed to the nearby Dunlop tire plant.
Cuyahoga Valley Scenic Railroad
The Cuyahoga Valley Scenic had the mis- fortune of dealing with severe weather when thunderstorms caused passengers to be stuck by the rising waters of the Cuyahoga River on June 27,. During the storm, the river rose and covered an ac- cess road for traffic, leaving passengers without a way to get their vehicles out of a parking lot. The severe weather caused the next day’s excursions to be cancelled.
Finger Lakes Railway
Finger Lakes received SD38-3 3304 at Geneva, N.Y., during the month of June.
New Power for Goderich-Exeter
Quebec Gatineau Railway transferred GP35 No. 2500 to the Goderich-Exeter Railway in July 2015. It was immediately into service, seen here on July 25, 2015, on train 518 from Stratford, Ont., arriving at Kitchener for work. The locomotive was then assigned to GEXR train 582 (Galt to Guelph and return via Fergus spur) and is expected to remain in captive service for a while as a result.
PHOTO BY STEPHEN HOST
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