Texas State Railroad to get new owners
May 11, 2012 / Updated June 26, 2023
Heritage
Ownership and operations of the Texas State Railroad could change hands within 90 days if a deal is reached between American Heritage Railways and Iowa Pacific Holdings.
Texas State Railroad Authority agreed Thursday to pursue the proposed acquisition of the railroad from current operator AHR to IPH. TSRA President Steve Presley said that the companies have discussed terms for the Chicago-based short line freight and tourist railroad group to take over the cash-strapped TSR. “I would say we’re within 60-90 days of having a closing,” Presley said.
IPH, according to published reports, wants to bring commercial freight operations to the line while maintaining tourist operations. The company is talking to Union Pacific about accessing a 3-mile stretch of line from the Palestine Depot to an interchange point. President Ed Ellis told a local radio station that IPH is interested in creating a transload facility for rail/truck transfer to move oil and timber industry products. IPH owns six railroads in the U.S. – including the Texas-New Mexico Railroad and West Texas & Lubbock Railway – and two lines in Great Britain.
AHR has struggled to make a profit since taking over TSR in 2009, Presley said. AHR President Al Harper made unsuccessful pitches earlier this year for additional funding and forgiveness of $2 million in loans. When AHR took over operations, TSR was losing more than $1 million per year and on the verge of shutdown by the state. Last year, TSR managed to get within $150,000 of break-even by managing costs, like shutting down steam runs from Palestine. But this year, remediation from a 1,000-gallon diesel fuel spill has taken a financial toll.
“AHR had almost gotten it to profitability,” Presley said. “They’ve gotten the railroad back from losing $1.5 million to break even. At this point, they didn’t have the cash flow because of unrelated issues to continue to keep the operation going.”
Spring is when large-scale model railroaders with their green thumbs plant and prune colorful foliage grown nearly to scale. In some areas, maintaining outdoor layouts is quite challenging because of changing weather. Nancy Norris, an author who builds garden railroads professionally, says some plant varieties have become more difficult to grow in certain Hardiness Zones. In some cases it means garden railroaders having to put more emphasis on growing native plants rather than relying on varieties more susceptible to extreme conditions. She recommends new gardeners consult with their local nurseries for the best choices for an outdoor layout. Norris also has a few recommendations of her own.
Sweeping tariffs imposed on goods imported into the United States are stirring model railroad manufacturers. As a result, model railroading and other hobbies will cost more. In February the U.S. applied a 10 percent tariff on goods imported from China, and the tax has since escalated. Suppliers – including Athearn, InterMountain Railway Co., Broadway Limited, Rapido Trains and ScaleTrains – have been putting dealers and customers on notice that prices will increase tariffs are implemented.
The first rule of railroading is “expect movement on any track at any time in any direction.” This may seem like an overabundance of caution, but railroading is a dangerous sport. Always expect a train when you’re around the tracks. The second rule of railroading is that there is an exception to every rule. The North American freight car fleet in 2023 consisted of 2.03 million rail cars, according to Railinc’s Umler Equipment Index. Rail car fleet management — how empty cars get dispatched to move to their next loading point — is an ever-moving process and often requires fleet car managers to be nimble.
A vintage Lionel store display is always a crowd pleaser, Atlas' N-scale True-Track is the right solution for a new test track on the Whitehurst & Pine Ridge Railroad, The Green Diamond was Illinois Central's gem on the St. Louis-to-Chicago route and more!
