RailAmerica Acquires Alabama Rail Line from BNSF

BOCA RATON, Fla. – Burlington Northern and Santa Fe Railway Company has sold and leased 288 miles of track in and around Mobile, Ala., to RailAmerica’s wholly-owned subsidiary, the Alabama & Gulf Coast Railway for about $15 million.

AGR rail service began June 1, 2003, on the line.

The 288 miles of track runs from Amory, Miss. to Mobile and connects directly with AGR at Kimbrough, Ala. RailAmerica now provides direct access to the Port of Mobile for large paper product manufacturers and other customers in the region.

AGR anticipates hauling approximately 23,000 additional carloads and generating approximately $12 million in new operating revenue on this line in its first full year of operation. Major shippers on the line include Gulf States Paper Corporation, EKA Chemical, Kerr-McGee Chemical, Weyerhaeuser and the Port of Mobile.

Including this acquisition, AGR now operates 429 miles of rail line and expects to move approximately 58,000 carloads annually. Principal commodities include paper, pulp and paper products, chemicals and grain. AGR interchanges with five Class I carriers at various locations, including BNSF at both Amory and Columbus, Mississippi. AGR also gains new interchanges with fellow short line operators Meridian & Bigbee Railroad, Golden Triangle Railroad, Columbus & Greenville Railroad, Luxapalilla Valley Railroad and Terminal Alabama State Docks Railroad. RailAmerica acquired AGR in January 2002 when it acquired StatesRail.

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