NORTH CREEK, N.Y. — The Tahawus segment of the former Saratoga & North Creek Railway has a new owner. Again.
The Albany Times-Union reports that Revolution Rail will pay $2.7 million for the 30-mile segment of the line north of North Creek, which was not part of regular S&NC tourist operations. That portion leads to a former titanium mine in Newcomb, N.Y.
Revolution had been the No. 2 bidder in a bankruptcy auction for the rail line, but the winning bidder — Doc N Duchess Railway, owned by New Mexico residents John and Carol McLean Wright — failed to produce a required down payment [see “Sale of Saratoga & North Creek trackage in jeopardy,” Trains News Wire, April 8, 2022].
Doc N Duchess had bid $3.3 million for the line earlier this, and the Wrights had said they would also buy the titanium mine and revive production. But bankruptcy trustree William Brandt Jr. told the newspaper it is now unclear whether the Wrights had the necessary financing.
Revolution Rail, which already has operated a rail biking operation on the line, has provided a deposit and made a request to the Surface Transportation Board for common carrier status. Revolution will work with New Jersey’s SMS Rail Lines, a shortline operator noted for its continued use of Baldwin diesels, to provide freight service, according to Revolution’s operations director, Edward LaScala.
More information on the Revolution Rail rail bike operation is available on the company’s website.
It’s more than just bringing down the titanium tailings. The original winning bidder was also working a smelter deal so they had somewhere to take it. Revolution Rail has an operator for the trains, now they just need to find a specialty metals company that wants to forge the raw material.
Titanium prices peaked in 2006 at $16k per ton. As of 2020 it had settled into a price of around $8k per ton before Ukraine/Russia. Now its $28k per ton and it comes from China.
It may be the unsettle worldwide supply disruptions that titanium prices may increase enough to reopen the mine?
Great! Best outcome, two established rail companies taking control.