OmniTRAX Acquires California Short Line Railroad Through Joint Venture

OmniTRAX, a prominent transportation services company, has expanded its national rail network by acquiring a California short line railroad through a joint venture with Coast Belle Rail Corp. This is reported by the railway transport news portal Railway Supply.

This acquisition marks OmniTRAX’s 29th rail operation and its second in California. The financial terms of the agreement remain undisclosed.

Strategic Importance of the Acquisition

The acquired railroad connects Central Coast Valley businesses and agricultural sectors to coastal ports and the North American freight-rail network. This strategic location enhances OmniTRAX’s ability to serve key commercial and agricultural hubs in California.

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Coast Belle Rail Corp. has operated the 114-year-old Santa Maria Valley Railroad since 2006. The system comprises 14.7 miles of mainline track, interchanging with Union Pacific’s line in Guadalupe, California.

The acquisition introduces numerous sidings and spurs, supporting future growth and capacity expansion. Transloading services at the Osburn Rail Yard in Santa Maria cater to businesses lacking direct rail access.

Rob Himoto, President of the Santa Maria Valley Railroad, emphasized the partnership’s significance, stating that it brings essential resources and development capabilities to ensure the railroad’s continued service to Californians for generations.

Future Plans for Growth and Expansion

While specific financial details are undisclosed, the acquisition is expected to be accretive to OmniTRAX’s earnings. The company anticipates investing in infrastructure improvements and service enhancements to meet growing demand.

This acquisition aligns with OmniTRAX’s strategy to expand its footprint in key markets and enhance connectivity for its customers. The company plans to leverage its expertise to modernize the acquired railroad, improving operational efficiency and service reliability.

By integrating the California short line railroad into its network, OmniTRAX aims to strengthen its competitive position and better serve the evolving needs of its clients in the region.

Source: www.progressiverailroading.com

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