News

PATRIOT RAIL CORP. PURCHASES RARUS RAILWAY- MONTANA SHORT LINE IS SECOND ACQUISITION FOR RAILROAD HOLDING COMPANY

Boca Raton, FL – Patriot Rail Corp., a freight railroad holding company, today announced the purchase of Rarus Railway Corp., a short line railroad headquartered in Anaconda, Montana.

Rarus provides freight service over 26 miles of main line track between Anaconda and Butte, Montana.  In addition, it operates 40 miles of rail line located in 4 switching yards and numerous passing sidings along the route.  Rarus also operates a fully equipped 20-bay locomotive roundhouse, wheel shop and machine shop in West Anaconda.  In 2006, the railroad hauled 11,512 carloads, primarily copper tailings, impacted soils, copper concentrates and slag with its fleet of 12 locomotives. 

The acquisition, from the McCarthy family of Anaconda, Montana includes the Copper King Express, a popular excursion train that last year carried approximately 10,000 round-trip passengers between Anaconda and Butte.  Patriot said it will continue to operate the Express and is developing a program to expand ridership and provide additional services. 

Gary O. Marino, President and CEO of Patriot Rail, said “Short line railroads such as Rarus have a growing national strategic value.  Rarus has numerous opportunities for expansion beyond its existing customer base and we will be investing new capital to grow the company.”  Marino added, “We will work closely with local and state officials and with Patriot’s business partners throughout North America, to pursue economic development opportunities.” 

Marino, former Chairman, President and CEO of RailAmerica, Inc. (NYSE: RRA), formed Patriot Rail late last year.  He noted the company, with significant investment capital provided by its partner, Plainfield Asset Management, is seeking short line rail acquisitions that have strategic and geographic importance and substantial growth potential.  Patriot’s first rail acquisition, the Tennessee Southern Railroad, recently reported a 53% increase in carloads in its first 6 months operating under Patriot Rail.

The Rarus line was built in the 1890’s to serve the Anaconda Company, which operated copper mines in Butte, along with a smelting operation in Anaconda.  The downtown Anaconda corporate office also serves as a museum and staging area for the Copper King Express tourist train, a popular attraction for history and railroad enthusiasts. 

For more information about Patriot Rail, contact Wayne August at (561) 443-5315, or online at www.patriotrail.com.