A $105 million acquisition of the Winchester & Western Railroad (WW) is confirmed to close sometime around Q3 2019, between affiliates of OmniTRAX and the Broe Group according to information released this week.
OmniTRAX and Broe Group are participants in the definitive agreement to acquire the Winchester & Western Railroad from Covia Holdings Corporation which currently operates throughout Maryland, New Jersey, West Virginia and Virginia. The acquisition ultimately expands OmniTRAX’s short-line reach into the east coast markets, adding access to 100 million people per transit day.
“OmniTRAX has been growing at an average annual rate of 20+ percent for the past five years and the acquisition of this strategic distribution hub is a deliberate step toward enhancing the continued growth and strength of our thriving network,” said Kevin Shuba, OmniTRAX CEO.
OmniTRAX‘s Precision Scheduled Short Line Railroading – known for decreasing operational costs, is one of the strategies expected for the WW upon closing of the acquisition. Its point-to-point delivery approach will increase performance, service, growth and safety.
“Our expansion into these dynamic markets with a diverse, established customer base and strong regional economic partners offers tremendous growth potential and we have high expectations for economic impact and job production,” Shuba concluded.
A new EPA Tier-4 compliant locomotive built by Knoxville Locomotive Works was unveiled today by privately held transportation service company, OmniTRAX and the Stockton Terminal and Eastern Railroad (STE).
“This new state-of-the-art locomotive is the result of hard work by many individuals from the San Joaquin Valley Unified Air Pollution Central District, OmniTRAX, KLW and other stakeholders, and will enhance the quality of life in Stockton and nearby communities. The Stockton Terminal and Eastern Railroad wouldn’t have been able to replace its old locomotive without their determined effort,” said Kevin Shuba, CEO of OmniTRAX.
The new unit’s energy efficiencies support the overall goal of the San Joaquin Valley Unified Air Pollution Central District’s (UAPCD) Locomotive Program that provided a grant for the purchase. UAPCD’s grant program provides funds for the replacement of older locomotives for newer, environmentally-friendly ones.
“Despite major reductions in emissions, the Valley continues to face difficult challenges in meeting federal air-quality standards,” said Samir Sheikh, the Executive Director / Air Pollution Control Officer of the Valley Air District. “It will be difficult for the Valley to attain the standards for ozone and particulates without these innovative low-emission locomotive projects.”
“This project is a major step in our efforts throughout the Valley to improve public health through financial incentives to reduce pollution.” “Improving the health and quality of life in disadvantaged communities such as around the Port of Stockton is important to me and the Air District,” said Stockton City Councilmember and Valley Air District Governing Board Member Christina Fugazi.
OmniTRAX and Georgia-Pacific are partnering up in an effort to increase railway transportation efficiencies for OmniTRAX’s new plant based in Albany, GA starting in 2019 upon completion of new construction.
In addition to the Georgia-Pacific partnership, the company plans on adding railway track connection from the new facility. The railway will connect to the mainline of the Georgia & Florida Railway, stretching 222 miles from Albany to northwestern Florida regions. The main connection will start in the nearby Albany-Dougherty Industrial Park.
Companies such as Miller Brewing, Flint Hills Resources and Procter & Gamble are among others that utilize the GFRR.
“Georgia-Pacific is a great partner for OmniTRAX and the GFRR, and the new plant will allow us to show case our customer service expertise even more. We also appreciate the support of the local, state and federal governments to make this project happen in Southwest Georgia and are pleased to be a part economic growth in the region,” said Kevin Shuba, CEO of OmniTRAX.
The new facility will primarily produce lumber and wood chips estimated to create a total of 300 million board-feet each year of lumber. In addition to being a Broe Group affiliate, OmniTRAX is noted as one of the largest privately held North American transportation services. Georgia-Pacific is known for making household brands such as Brawny® paper towels and Dixie® tableware and cups.
Source: RAM Communications