From the newswire at Trains.com: RailAmerica acquires new routes; TP&W adds 40 miles RailAmerica expects deals extending three of its short lines will increase carloads, generate new business, and improve revenues. RailAmerica’s 290-mile-long Toledo, Peoria & Western has purchased 40 miles of right of way from Winamac to Logansport, Ind., from Cargill Industries for $1.85 million. The deal enables TP&W to solidify its connection to the Winamac Southern Railroad, a short line operated by RailAmerica that ultimately connects to RailAmerica's Central Railroad of Indianapolis, RailAmerica says. Previously the line was operated under a long-term lease. The purchase enables TP&W to avoid more than $600,000 in capital costs. The 73-mile-long Chesapeake & Albemarle Railroad has entered into an agreement with Norfolk Southern to lease an additional four miles of line that connects with the C&A at Butts, Va., and extends to Chesapeake, Va. C&A took over operation on Jan. 4. Dallas, Garland & Northeastern Railroad has entered into an agreement with Kansas City Southern to purchase approximately 2.6 miles of track, right-of-way, real estate leases, and facilities owned by KCS in western Dallas for $850,000. DGNO has signed a six-year agreement to handle KCS-UP interchange traffic in the Dallas area. DGNO expects the west Dallas and KCS-UP interchange traffic to continue to generate approximately $1 million annually in revenue. DGNO and KCS are expected to complete the purchase in the first quarter 2003. RailAmerica also has been awarded a standby operating services contract by the Southern California Regional Rail Authority to provide over 100 conductors and engineers for the operation of commuter trains. The crews would be provided in the event that Amtrak is unable to perform or fulfill its duties under its current contract with SCRRA. The "as-needed" contract runs from Jan.1, 2003, to June 30, 2004.
