Northeast Texas Short Line RR at Lone Star to have a new owner
June 14th, 2021
June 14, 2021 - TRA Newswire -
Texas and Northern Railroad, owned by a unit of United State Steel Corp, will change ownership as the steel company sheds six freight rail lines under its corporate umbrella.
Pittsburgh-based U.S Steel agreed to sell its Transtar LLC business unit, which is made up of six freight rail lines in six different states. Transtar will be sold for $640 million to an affiliate of New York-based Fortress Transportation and Infrastructure Investors LLC (FTAI).
Texas and Northern Railroad operates over 8 miles of track connecting Lone Star, in Northeast Texas to the Kansas City Southern line between Daingerfield and Hughes Spring in Morris County.
The transaction is expected to close in the third quarter of 2021 subject to closing conditions and regulatory approvals. It includes a provision that subsequent owners must maintain existing operations for 15 years.
Other Transtar railroads involved in the sale are Gary Railway Company in Indiana; Lake Terminal Railroad Co. in Ohio; Union Railroad Co. LLC in Pennsylvania; Fairfield Southern Co. Inc. in Alabama and Delray Connecting Railroad Co. in Michigan.
“By selling Transtar to an experienced railroad operator, U. S. Steel can better focus on our broader ‘Best for All’ strategy,” says U. S. Steel President and CEO David B. Burritt. “In addition, the strong partnership we have created with FTAI will ensure continued support of our steelmaking facilities with predictable and cost-effective railroad operations.”
Texas and Northern rail traffic at the Lone Star steel blast furnace and pipe rolling mill consists of outbound pipe, and inbound scrap steel and alloy steel ingots. The steel blast furnace ceased operations in the 1980's and a number of branch rail lines were taken out of service as ore mining ceased in the area. The railroad has been operating since 1948.
Texas and Northern Railroad, owned by a unit of United State Steel Corp, will change ownership as the steel company sheds six freight rail lines under its corporate umbrella.
Pittsburgh-based U.S Steel agreed to sell its Transtar LLC business unit, which is made up of six freight rail lines in six different states. Transtar will be sold for $640 million to an affiliate of New York-based Fortress Transportation and Infrastructure Investors LLC (FTAI).
Texas and Northern Railroad operates over 8 miles of track connecting Lone Star, in Northeast Texas to the Kansas City Southern line between Daingerfield and Hughes Spring in Morris County.
The transaction is expected to close in the third quarter of 2021 subject to closing conditions and regulatory approvals. It includes a provision that subsequent owners must maintain existing operations for 15 years.
Other Transtar railroads involved in the sale are Gary Railway Company in Indiana; Lake Terminal Railroad Co. in Ohio; Union Railroad Co. LLC in Pennsylvania; Fairfield Southern Co. Inc. in Alabama and Delray Connecting Railroad Co. in Michigan.
“By selling Transtar to an experienced railroad operator, U. S. Steel can better focus on our broader ‘Best for All’ strategy,” says U. S. Steel President and CEO David B. Burritt. “In addition, the strong partnership we have created with FTAI will ensure continued support of our steelmaking facilities with predictable and cost-effective railroad operations.”
Texas and Northern rail traffic at the Lone Star steel blast furnace and pipe rolling mill consists of outbound pipe, and inbound scrap steel and alloy steel ingots. The steel blast furnace ceased operations in the 1980's and a number of branch rail lines were taken out of service as ore mining ceased in the area. The railroad has been operating since 1948.