OZARK VALLEY, KCS RAILROAD COMPANIES ANNOUNCE DEAL MEXICO, MO -- Ozark Valley Railroad, Inc. announced Thursday it has reached agreement with Kansas City Southern Railway Company to convey 24.6 miles of track on two spur lines in Audrain and Callaway counties to Ozark Valley. The deal sells 22 miles of the Fulton Branch between Mexico and Fulton to Ozark Valley. Included in the sale is 2.6 miles of the Arthur spur, a track segment servicing the CTS Cement Manufacturing Plant in Mexico. CTS - a major manufacturer of cement and a leader in specialty cement technology -- purchased the former National Refractories plant in Mexico in March 2006. Currently, new silos are being installed which will be used to fill trucks with dry cement. The cement will be brought to the plant by rail. Kansas City Southern Railway is also leasing three miles of the Fulton branch track in Mexico to Ozark Valley, and providing trackage rights over its main line between Mexico and the Arthur spur, thereby allowing Ozark Valley to service both lines. Ozark Valley plans to begin serving customers along the leased portion of the Fulton branch by mid-June following regulatory approval. Service to the Arthur spur and remaining Fulton Branch will commence once track improvements have been completed. - The Mexico (MO) Ledger-News ------------------------- SALE OF RAIL SPUR VITAL FOR DEVELOPMENT EFFORTS, OFFICIALS SAY Photo here: [www.fultonsun.com] Caption reads: The historic Auxvasse Creek bridge is one of the most scenic spots along the Fulton railroad branch, which runs south from Mexico into Fulton city limits. Ozark Valley Railroad has announced an agreement to purchase the line, in a move local officials say could be key to restoring regular rail service to the area. (Justin Kelley/Fulton Sun photo) FULTON, MO -- Rail traffic may restart in Callaway County in as little as three months under an agreement announced Thursday by Ozark Valley Railroad, a Mexico, Missouri company that plans to purchase the Fulton Branch from Kansas City Southern Railway Co. A company official said Ozark Valley may invest more than $350,000 to prepare the line for local freight traffic, pending the sale's approval by federal regulators. Ozark Valley general manager Kurt Gaylor hopes the investment will encourage local businesses to once again consider rail as a viable alternative. “We're hoping to build it and they will come,” Gaylor said. Local officials hailed the move as crucial in ongoing efforts to lure industrial development to the area. “There are so many economic development opportunities that would require rail service,” said Fulton Mayor Charlie Latham. “In the future, communities that have rail service will be at a huge advantage.” Under terms of the sale, Ozark Valley takes ownership of 22 miles of track from Mexico city limits to the line's terminus near Fulton's Harbison-Walker refractory plant. KCS will lease a three-mile stretch of the spur within Mexico to Ozark Valley in an effort to retain access to the city's industrial park, Gaylor said. Ozark Valley also takes ownership of the Arthur Spur, a 2.6-mile line that runs north of Mexico to the former National Refractories and Minerals plant -- now home to CTS Cement Manufacturing Corp. The spur is being overhauled through a $1.98 million grant secured from the Federal Highway Administration. On the Fulton Branch, Latham touted abundant rail-frontage space available within city limits. The line enters Fulton from the north, running parallel to Business 54 past William Woods University before turning west and crossing Westminster Avenue near West Ninth Street. But to win over Callaway County businesses, the company may have to demonstrate the line's condition has improved from years past. A freight car derailed near Mertens Construction Co. south of Auxvasse in 2004, and traffic on the line has been virtually nil since then. Fulton Area Development Corp. director Bruce Hackmann expects most companies to adopt a “wait-and-see” attitude. “Until (the improvements) happen, I'm sure there's going to be some skepticism,” Hackmann said. Still, with fuel prices on the rise, Gaylor said businesses like CTS and Harbison-Walker are exploring alternatives to truck transport. “There's a lot of potential,” Gaylor said. “It's going to take some effort and TLC.” Hackmann and former Mayor Robert Craghead long backed a sale of the Fulton Branch, based on their belief that KCS was lax in maintaining and promoting the line. “There just wasn't a high commitment to building traffic,” Hackmann said. “This is something we really felt we had to do to preserve and grow this rail spur.” Now, Hackmann expects that Ozark Valley's promotional efforts will keep Fulton in the picture for future projects. For example, Hackmann said Fulton businessman Boyd Ware was drawn to the planned location of a new biodiesel plant off Westminster Avenue partly because of its proximity to the rail line. “It gives us a willing partner in economic development,” Hackmann said. Officials also hinted at the line's potential for passenger traffic -- particularly as part of an effort aimed at promoting tourism. However, they played coy about the possibility that such an arrangement might be in the works. “Anytime you have rail, there's always the potential for tourism,” Latham said. “This is the first step.” - Mark Sommerhauser, The Fulton Sun
