WASHINGTON — Short line holding company R.J. Corman plans to operate 154 miles of Norfolk Southern branches through a combination of acquisitions and leases in Tennessee, Kentucky, and Virginia.
R.J. Corman’s Knoxville & Cumberland Gap Railroad will acquire 112 miles of NS lines, including the Jellico Line from Clinton, Tenn., to Lot, Ken., and from Hyde, Tenn., to Clairfield, Tenn., as well as the Middlesboro Line from Beverly, Tenn., to Cumberland Gap, Tenn.
“We see a lot of potential for growth, expansion, and economic development in the region, and we look forward to providing our customers with our first-class quality service with safety-first operations,” Ed Quinn, president and CEO of R.J. Corman Railroad Group, said in a Thursday press release. “We are thankful for our Class I business partner, Norfolk Southern, and our continuing and growing partnership through the years.”
The transaction, outlined in a regulatory filing with the Surface Transportation Board this week, includes trackage rights over NS and CSX lines to connect the branches. Also included: A lease on the CSX Harbell, Bennett’s Fork, and Stony Fork branches radiating from Middlesboro, Ky.
In all, the railroad will consist of two branches, 0ne of 59 miles between Clinton and Clairfield and one of 72 miles from Beverly, Tenn., to Middlesboro, Ky. The branches, previously owned by Norfolk Southern, were historically part of the Southern Railway.
Fourteen customers in a range of industries are located on the lines included in the transaction, including coal mines, plastics producers, and a plant that produces paper packaging.
R.J. Corman reached an agreement with NS on Dec. 28 and has asked the STB to make the transaction exempt from review. The deal could be effective as early as Feb. 25, according to the filing.
— Updated at 3 p.m. CST on Jan. 27 with comment from R.J. Corman Railroad Group CEO Ed Quinn and additional details.
RJ Corman is a fine operation. They have completely revived the former Carolina Southern which was condemned by the FRA. Their derailment services along with Hulcher are some of the first to any cleanup and have everything running in miraculous time.
This company cannot install signaling systems properly, not sure would trust the with a railroad bigger the a Lionel starter set.