Greenwich, Connecticut-based shortline conglomerate Genesee & Wyoming Inc can control RailAmerica.
The Surface Transportation Board issued a late release today approving the transaction. If there are no requests to stay the decision before a December 24 deadline, then the deal becomes effective December 28 and a voting trust G&W set up after purchasing RailAmerica October 1 will be dissolved.
The merger puts three Peoria area shortlines under common control. G&W’s Illinois & Midland Railroad and Tazewell & Peoria Railroad will be joined by the Toledo Peoria & Western Railway. The Tazewell & Peoria Railroad leases the Peoria & Pekin Union Railway so only two of the three are G&W owned.
All three railroads should see some benefit from this transaction. Word is that G&W is more visionary than RA. It thinks more long term and commits more $$$ to keeping its motive power fleet and physical plant in top condition.
One change I expect to see at the TP&W includes consolidation of engine shop functions at the TZPR’s Creve Coeur facility. Another is that although TZPR and TP&W have access to the same customers on ADM’s River Track in Peoria, I expect both to continue providing service.
A study will be commenced to determine the best ways to use the two East Peoria Yards. In the end, though, I expect TP&W operations to be based at their own East Peoria Yard rather than integrated with TZPR’s facility. That is so TP&W-served grain shippers continue to get single-carrier service to ADM’s Peoria plant and KJRY/Mapleton traffic moving to and from CN/CSXT/NS does not have to be switched at TZPR’s East Peoria Yard.
Finally, I expect the TP&W name to remain. In the past, G&W purchased shortlines and renamed them to fit a standardized ”—&—” naming convention.
- David P. Jordan
11 responses so far ↓
1 alex // Dec 20, 2012 at 11:54 pm
im both excited for this and somewhat sad for this. although I hate railamerica, i dont really want to see orange engines everywhere either.
Any chance they merger the im and tpw together into one?
2 David P. Jordan // Dec 21, 2012 at 8:39 am
Hi Alex,
I’ve thought of IMRR and TPW being combined but I doubt it will happen. The two carriers having nothing in common, and there’s little traffic exchanged between them. Best they remain separate. We’ll probably see some exchanges in motive power.
3 alex // Dec 21, 2012 at 10:48 am
My fictional Ho layout is a combination of IAIS, TPW, PPU, CIM, and “on paper” a few roads in indiana, ISRR, IRND, WINMAC< CERA< CIND, IORY to make a class one of my own.
My operations take the unit trains of coal at Council Bluffs, with the rr's own units. and take them all the way in. No foreign power allowed. Making used purchases of sd-60m's and 70m's from BNSF (since they have so many sitting around)
I always thought it might be neat to see something like that.
I do hope that the GWRR doesnt stock the TPW with Gp9's or 10's im getting tired of seeing those.
Think that GWRR will begin rehabing the line?
4 David P. Jordan // Dec 21, 2012 at 11:49 am
TP&W recently got two GP50′s (still in BN green paint) from sister Indiana & Ohio Railway, and is expected to get three more after the start of the new year. Don’t know if this was due to G&W influence, or if G&W will do something else.
5 alex // Dec 21, 2012 at 1:14 pm
the GP-50s have been nice to see, have seen them parked on the fuel track and moved to the maintence shed and then behind the shed, not getting much work done.
6 Rich // Dec 21, 2012 at 3:08 pm
Hope you are right about the name remaining the same.Even if they re named it the Tazewell Peoria & Woodford the initials would be the same.It would be sad to see one of Americas oldest railroad names changed.
7 David P. Jordan // Dec 21, 2012 at 10:58 pm
Rich,
I believe there are specific reasons why G&W-named shortlines replaced the C&IM (complex legal issues) and P&PU (20-year lease). So I expect the TP&W name will be with us for a long time.
8 alex // Dec 26, 2012 at 2:47 pm
If the TPW and IM were to merger into one, Wouldnt it allow IM coal trains to bypass the need for TZPR Crews to handle the trains?
9 David P. Jordan // Dec 26, 2012 at 3:34 pm
TZPR crews don’t handle coal trains going to and from IMRR, unless it involves the IAIS (as with four test trains in 2011). BNSF trains run over TZPR via trackage rights. BNSF coal trains interchanged with CN on TZPR’s Pekin mainline don’t use TZPR crews either.
G&W’s petition to control RA indicates shortline operations will remain as-is. So no mergers between connecting shortlines.
10 alex // Dec 26, 2012 at 8:34 pm
Do BNSF grain trains that interchange with CN follow the same deal as well?
11 David P. Jordan // Dec 26, 2012 at 10:17 pm
BNSF and CN exchange coal trains on TZPR’s Pekin mainline but TZPR crews are not involved.
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