Weyerhaeuser to sell short lines

Weyerhaeuser to sell short lines


Published: Monday, August 02, 2010
FEDERAL WAY, Wash. — Wood products manufacturer Weyerhaeuser will sell its five shortline railroads to Patriot Rail later this year, the company has announced. The decision follows a two-year strategic review and the decision for the company to focus on its main business line and to exit the railroad industry.

The five railroads include:

The Golden Triangle Railroad of Columbus, Miss., which serves a Weyerhaeuser cellulose fiber pulp mill in Columbus. This 13.3-mile property employs eight people and moves 8,000 carloads annually.
Mississippi & Skuna Valley Railroad, no longer in service.
Columbia & Cowlitz Railway of Longview, Wash., which serves the company's Longview complex. The complex includes a liquid packaging board mill, a newsprint mill, and a lumber mill. C&C moves 12,000 carloads annually, employs 13, and is 8.5 miles long.
The Weyerhaeuser Woods Railroad, also of Longview, which serves the same complex as C&C. This line operates 30 route-miles with 11 employees and moves about 6,300 carloads annually.
The DeQueen & Eastern Railroad of De Queen, Ark. This railroad operates 87 route-miles, employs 70, and originates about 35,000 carloads per year.

Weyerhaeuser spokesman Greg French tells TRAINS News Wire that Patriot officials have assured the company they intend to operate the lines. He said he expects 120 employees will make the move to Patriot.

Patriot is "in the railroad business," French said. "It's an exciting opportunity for these employees who are moving."

Shortline entrepreneur Gary Marino has built up the publicly traded Patriot Rail to include six railroads around the country prior to the Weyerhaeuser deal. DeQueen & Eastern will be Patriot's largest road when the deal is completed.

 

Last time we were able to catch a woods train returning. Four SW switchers on the front and their bright yellow caboose on the rear!! Excellent! Unfortunately the two fellas that could have taken us inside to photograph the CLC were gone that day.

 

Here's a link to my small album on Longview, WA, and the Weyerhaeuser railroads in 1994:

TrainBoard.com

 

update

January 05, 2011 11:47 AM Eastern Time
Patriot Rail Corp. Completes Acquisition of Weyerhaeuser Company’s Railroads


BOCA RATON, Fla.--(BUSINESS WIRE)--Patriot Rail Corp. (“Patriot”), a privately-held short line and regional freight railroad holding company, today announced that it has completed the acquisition of the six short line railroads belonging to Weyerhaeuser Company, effective December 30, 2010. This acquisition, the largest for Patriot to date, brings to 13 the number of short line railroads currently owned by Patriot Rail.

“We look forward to growing the business on the rail lines through innovative and competitive service offerings to existing and new customers.”
​

The six Weyerhaeuser railroads operate over approximately 160 miles of track in four states, employ 88 people and handle approximately 60,000 carloads of freight annually. The railroads primarily serve Weyerhaeuser and International Paper mills and a number of third-party customers. Major commodities hauled include wood and paper products, chemicals, industrial waste, minerals and agricultural products. Each of the railroads interchange traffic with multiple Class I carriers and other short line railroads.

The six railroads are listed below:

• the DeQueen and Eastern Railroad (DQE) operates over 50 miles in southwest Arkansas;
• the Texas, Oklahoma & Eastern Railroad (TOE) operates over 41 miles in southeast Oklahoma and connects directly with the DQE at the Oklahoma/Arkansas border;
• the Columbia & Cowlitz Railway (CLC) operates over 14 route miles in southwest Washington;
• the Patriot Woods Railroad (PAW) operates over 23 route miles in southwest Washington and connects directly to the CLC;
• the Golden Triangle Railroad (GTRA) operates over 9.5 route miles in central Mississippi; and
• the Mississippi & Skuna Valley Railroad (MSV) owns 22 route miles in Mississippi.

In addition to the rail lines and other track assets, the acquisition also includes 28 locomotives, over 300 railcars, 2,500 leased railcars, 50 motor vehicles, right-of-way real estate, general office buildings, maintenance of way equipment, locomotive shops, rail car repair shops, a wheel shop, rail yards and office and shop equipment.
“This transaction represents the acquisition of very attractive railroads with strong cash flow, a dedicated workforce, a well maintained track infrastructure, a highly stable customer base, and appealing growth opportunities,” said Gary O. Marino, Chairman, President & CEO of Patriot Rail. “We look forward to growing the business on the rail lines through innovative and competitive service offerings to existing and new customers.”
“We are pleased to complete the transaction with Patriot and look forward to working with them to continue receiving dependable rail service to our mills,” said Daniel S. Fulton, Weyerhaeuser President and Chief Executive Officer.
Financing for the transaction was provided by Fifth Third Bank, Prudential Capital Group and Prudential Capital Partners. Oppenheimer & Co. acted as financial advisor and Greenberg Traurig, P.A. acted as legal advisor to Patriot in connection with the acquisition.
Patriot Rail Corp. is a short line and regional freight railroad holding company based in Boca Raton, Florida. The Company owns and operates 13 short line freight railroads comprising approximately 500 total rail miles in 12 states. For more information on Patriot Rail Corp. visit us at www.patriotrail.com.

 

I just heard that Patriot has sold off most of the old SW units. They are to be replaced with GP 15s and Gensets. The landfill train will be bumped from 1 train a day to 2 trains a day. Some of the SW's are still on site. So if you have your camera, you might want to take pics of them while you can.

 

I went down there on National Train Day, I tried to get some pics, only one was good. All the SW's and the Geep have the lettering blacked out with black paint. Sad.