A commenter provided a clue that this would happen. At least I think it was a clue. 
Anyway, the good news is that a business that is eager to expand its markets through access to rail transportation has filed an Offer of Financial Assistance (OFA) with the Surface Transportation Board to purchase at least portion of BNSF’s soon-to-be abandoned Dunfermline-Farmington line. Details and commentary will be posted later today.
Text of Hitchcock Scrap Yard’s filing:
To the Secretary of the Board:
Pursuant to the Application filed on or about January 4, 2013 by BNSF Railway Company (“BNSF”), seeking authority to abandon a line of railroad in Fulton County, Illinois, Hitchcock Scrap Yard, Inc., a non-carrier, hereby advises the Board and parties of record of its intent to file and Offer of Financial Assistance (“OFA”) under 49 CFR 1152.27. The OFA is to purchase all or part of the rail line extending from Farmington, Illinois (MP52.2) to Dunfermline, Illinois (MP 66.7), a distance of 14.5 miles in Fulton County, Illinois.
In connection with this notice of intent to file an OFA, HSY requests that BNSF provide the information set forth in 49 CFR 1152.27 (a) including the minimum purchase price required to acquire the line. HSY also requests that BNSF provide all data necessary to determine the estimate of net liquidation value of the line together with supporting data reflecting available real estate appraisals, assessments of the quality and the quantity of track material in the line and removal cost estimate to obtain net liquidation value.
HSY also requests that the Board toll period for submitting offers of financial assistance for an additional 30 days in order to provide HSY with an adequate opportunity to review and analyze the mateiral provided by BNSF and submit its OFA. This extension is consistent with the national transportation policy and will not unfairly prejudice the interests of any party.
This filing was prepared jointly by HSY and Keokuk Junction Railway counsels, thus the shipper has made known its preferred operator.
- David P. Jordan
8 responses so far ↓
1 Jan // Feb 4, 2013 at 3:17 pm
Oh good, Im keeping my fingers crossed on any further developments. Atleast its a start.
2 Ed Sanders // Feb 4, 2013 at 9:31 pm
This is indeed excellent news David! I was afraid that Hitchcock was no longer interested in rail service but now we can hope to see rail service returned to the old BNSF line.
3 David P. Jordan // Feb 4, 2013 at 10:06 pm
Ed, I agree. If the price isn’t too high, Hitchcock will most certainly secure this line for rail service. One thing for sure, the trail enthusiasts will be unhappy when they learn of this development!
4 alex // Feb 5, 2013 at 11:45 am
COuld Hitchcock purchase the whole line, then take and scrap the rails north of the diamond, then sell, or abandon that section? Keeping the southern section for their business use
5 Steve Jaeger // Feb 5, 2013 at 1:07 pm
It’s logical that Hitchcock’s ownership interest will be served only from the Hitchcock site northward to the KJRY diamond in Canton. David, do you forsee any problems restoring the wye in the southeast quadrant of the diamond so railcars can be shifted onto the KJ? the wye would have to cross route 78 at grade.
Presumably the Canton Park District will still get its trail north from the diamond to Farmington, where it would intersect the envisioned trail on the old M&StL right-of-way.
6 alex // Feb 5, 2013 at 1:52 pm
How would the determine the price, lack of current business and line deterioration would make this almost worthless. Besides BNSF was going to abandon it, why not just give it to them?
7 David P. Jordan // Feb 5, 2013 at 1:58 pm
Steve, Alex,
At the very least, Hitchcock only needs about two miles from their place of business north to the KJRY, but purchasing track south of there to BNSF at Dunfermline makes sense should Aventine desire service in the future (unless new track is built to reach Aventine from the north, KJRY would still have to negotiate with BNSF and Ameren for trackage rights to reach them).
KJRY’s involvement tells me the OFA will involve as much track as possible. But unless the coal mine and/or United Asphalt make noise about needing rail service, the BNSF ROW from Canton north should be free for trail conversion.
I believe the connection in the SE quadrant is still there. TP&W removed the middle of it before it ended operations (under contract with new owner A & K Railroad Materials) in late 2001. So Hitchcock should have a contract operator (KJRY) restore that section but also rehabilitate the connection after so many years of disuse. It wouldn’t suprise me if both switch tracks were completely replaced.
http://goo.gl/maps/rd6Fo
There is another option, however. The SE connection was placed into service in early 1971 to interchange coal trains (something done at Canton as recently as the mid-1990s). A connection in the SW quadrant enabled CB&Q-TP&W interchange for probably a century prior to that (and probably remained active into the 1980s). If HSY’s OFA includes real estate on the SW quadrant, a new connection there might be a better option.
8 David P. Jordan // Feb 5, 2013 at 2:07 pm
Hi Alex,
How would the determine the price, lack of current business and line deterioration would make this almost worthless. Besides BNSF was going to abandon it, why not just give it to them?
Price of real estate and scrap value of ties, rails, tie plates, bolts, railbars, etc. will factor into the price. But after paying for removal of the track, I don’t see the price for 14.5 miles exceeding $2 million, maybe not even close. TP&W sold 71.5 miles between Mapleton and La Harpe to A & K Railroad Materials in 2000 for $2.18 million (excluding real estate) and KJRY obtained a $7 million loan to purchase 76 miles from Hollis to La Harpe in 2005. So if you figure $100,000 per mile, you may be on the high side.
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