STB signs off on new Texas State Railroad operator

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WASHINGTON — The Surface Transportation Board has given the Western Group of Ogden, Utah, the go-ahead to begin operations of the Texas State Railroad.

Operating as the Texas & Eastern Railroad, the company expects to start operations on the 27-mile state-owned railroad in early May, according to Bruce Carswell, Western Group vice president of operations.

Western's public proposal to the Texas State Railroad Authority asked for a five-year contract, with payments of $150,000 the first year and $50,000 per year beginning in 2018. Carswell said discussions with the state are still under way, but so have have been “very productive.”

The Western Group operates the Cimarron Valley tourist railroad in Arizona, plus short line freight operations in Arizona, New Mexico, Colorado, and Wyoming. The consortium also has railcar repair and railroad construction branches.

The state authority in March selected the Western Group to replace Iowa Pacific Holdings as Texas State operator.

NEWSWIRETrains News Wire

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