“CN has stepped up to the plate in Alberta with sizable rail infrastructure investments,” Mongeau told the Edmonton Chamber of Commerce today. “Since 2006, we’ve purchased four rail short lines that are key to economic growth and prosperity in northern Alberta and have spent significant sums to maintain and improve them.

“Reliable, consistent rail service is essential to current and future oil sands and resource developments, and our infrastructure investments represent a clear and meaningful commitment to help foster that growth with quality rail transportation for our customers.”

Mongeau said CN’s short-line acquisitions and improvements have helped solidify its freight franchise in northern Alberta, characterized by important volumes of coal, sulphur, petroleum coke, steel pipe, grain, wood pulp, lumber and diesel fuel.

CN paid a total of C$76 million in 2006 and 2007 to buy the Mackenzie Northern Railway (MKNR), Lakeland & Waterways Railway (LWR), Savage Alberta Railway, Inc., (SAR), and the Athabasca Northern Railway (ANY). Click on http://www.cn.ca/documents/About-CN/map-alberta-shortline-railway-acquisition-en.pdf for a map of the former short lines CN has acquired.

Between 2006 and 2010, CN spent C$260 million to upgrade the infrastructure of these lines — including the installation of new rail, ties, ballast, track, other track materials, bridges, sidings and communication technology – and expects to spend another C$45 million this year on further upgrades. In addition to these expenditures, CN invested approximately C$10 million in a petroleum coke transload operation atFort McMurray, the logistics gateway to Alberta’s oil sands production region.

The first case concerns a challenge by Canadian National Railway Co. to an arbitration award that the company says would block a planned consolidation of its Troy, Mich., and Homewood, Ill., dispatching facilities. The American Train Dispatchers Association opposes the challenge, saying the arbitrator correctly found that CN has not upgraded its dispatching system and trained its dispatchers in a way that would allow the consolidation to proceed.

The second case centers around the proposal by GNP Rly, Inc., to acquire the right to restore rail service over two segments of railroad right-of-way that are currently reserved for a recreational trail.

GNP is asking the Board to vacate the Notice of Interim Trail Use it issued for these segments so the carrier can serve freight customers. King County, Wash., the trail sponsor, and the City of Redmond, Wash., oppose the request, saying that GNP does not own the right-of-way or have any other contractual rights to it, and so is not in a position to resume rail service.

OEA is issuing the SDEIS to address changes in the project that have developed since the preparation of the Draft Environmental Impact Statement (DEIS). Specifically, the SDEIS addresses the following issues:

• The potential environmental impacts associated with RJCP’s proposed transport of ethanol over the rail line
• The change in the preliminary plan approval status of the No-Build Alternative—Local Road System Upgrade (Black Rock Road)
• The results of the 2010 summer field survey for Branching Bur-reed (Sparganium androcladum), a Pennsylvania Endangered Species

OEA invites written comment from the public on all aspects of the SDEIS and is providing a 45-day public comment period.

The Board has instituted a declaratory order proceeding to determine whether the Board’s jurisdiction preempts the land-use code of Conejos County, Colo., where the transloading would take place.

The public hearing is scheduled for Thursday, Feb. 17, 2011 at 10 a.m. at Our Lady of Guadalupe Parish Hall, 6631 County Road 13, Conejos, Colo.

This acquisition, the largest for Patriot to date, brings to 13 the number of short line railroads currently owned by Patriot Rail.

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:

• 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
• 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.”

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, Fla. The company owns and operates 13 short line freight railroads comprising approximately 500 total rail miles in 12 states.

“Eighteen Thirty is seeking to acquire the Line as a result of the bankruptcy of James Riffin through an agreement with Mark J. Friedman, Chapter 7 Trustee of the Bankruptcy Estate of James Riffin,” the STB said in a notice in the Federal Register.

The line previously was acquired from CSX Transportation Inc. (CSXT) pursuant to an STB offer of financial assistance. That would have otherwise prohibited the transfer of the Line to any entity other than CSXT until July 10, the STB said.

According to an STB notice in the Federal Register, BFTR has entered into an agreement last month with RMW Ventures (RMW), the current owner of the line, to provide rail service upon. The agreement is pending STB authorization and that it will replace C Railroad Corp. as the operator of the line.

“BFTR states that its operating agreement with RMW does not contain any interchange commitments and that its interchange agreements with its connecting carriers will not contain any interchange commitments either,” according to the notice. “BFTR certifies that the projected annual revenues as a result of the proposed transaction will not exceed those that would qualify it as a Class III carrier and will not exceed $5 million.”

The Western Branch extends between the Texas-Oklahoma State line near Burkburnett, Texas, and Altus, Okla. The WTJR, a Class III rail carrier, has leased and operated the Western Branch since 1991; the line is owned by the Oklahoma Department of Transportation.

“WTJR states that, due to actions and inactions of others, it now has elected to exercise the purchase option,” according to a notice in the Federal Register. “WTJR points out that the filing of this notice of exemption to acquire the line does not render the lease renewal moot, because WTJR will not be able to consummate the acquisition before the current term of the lease ends. WTJR states that the proposed transaction does not contain any provisions that would limit future interchange with a third-party connecting carrier.”

The notice added: “WTJR certifies that its projected annual revenues as a result of the transaction will not result in WTJR becoming a Class II or Class I rail carrier and further certifies that its projected annual revenues will not exceed $5 million.”

The transaction is expected to be consummated on or shortly after January 16, 2011.

Succeeding him will be Thomas Schlosser, former chief executive officer of Global Rail Systems Inc. and chairman of the American Short Line & Regional Railroad Association from 2007 to 2010.

George joined FWWR in 2000 as vice president operations planning and support and was promoted to president and CEO in 2007. He will work closely with Mr. Schlosser until the transition is completed.

Schlosser had been CEO of Global Rail since 2007. The company is a subsidiary of Vossloh-Cogifer and manufactures railway signaling and train control and detection equipment.

Looking back, Steve George said, “Fort Worth & Western Railroad has become a vibrant, growing and profitable company serving the expanding DFW Metroplex. It has been my pleasure to lead the FWWR team as they strive for continuous improvement, becoming the energetic and competent group that makes FWWR a special place to work.”

“Steve and his team have transformed a six-mile short line into a great railroad. He’s done a fantastic job. He’s good at what he does and I have great respect for him,” Schlosser said. “I’m looking forward to maintaining and adding to the momentum that Steve has created.”

After months of STB-led mediation and extensive involvement of federal, state, and local officials, Maine businesses and workers, the Board today formally approved the request of the Montreal, Maine & Atlantic Railway to abandon 233 miles of rail line in Aroostook and Penobscot counties. The action will pave the way for the state of Maine to acquire the line and find a third-party operator to serve rail customers in Northern Maine. Meanwhile, MM&A is continuing to operate on the line, the STB said.

In addition to facilitating mediation among the parties, the STB held a public hearing in Presque Isle, Maine, on July 7, where Board members heard from state, federal and local representatives, members of the public and MM&A officials.

“I am pleased that the STB was able to play a role in keeping the trains rolling in northern Maine,’’ said Board Chairman Daniel R. Elliott III. “It is an important achievement that will preserve jobs and businesses in the state and set the stage for future economic development.”