MOUNT VERNON — Over the weekend, Genesee & Wyoming Inc. reached an agreement to acquire nine short line railroads known as the Ohio Central Railroad System. The OCRS owns 64 locomotives and operates over 445 miles of track and includes a line between Newark and Mount Vernon.
The acquisition was made for $219 million in cash, and Genesee & Wyoming will pay $25 million of that when certain conditions are met.
However, the acquisition must also receive approval from the state of Ohio, and the deal is expected to be final in the fourth quarter of 2008.
Phil Pearce, branch manager with the Central Ohio Farmers Co-op, said that his organization is dependent on the railroad line and also noted that rail service helps the local economy. Typically, the Farmers Co-op loads trains three times per week, and last year loaded and shipped 550 rail cars, according to Pearce.
Pearce emphasized that 550 rail cars equaled approximately 2,000 semitrailer loads, and that by shipping by rail, the Farmers Co-op had kept a large number of trucks off of the roads.
“We want to keep the railroad going,” said Pearce, noting that the Weyerhaeuser company is also dependent on railroad service.
Local railroad enthusiast John Minard said that now, the future of the OCRS’s steam locomotive program is up in the air. According to Minard, OCRS has 10 steam locomotives stored near Coshocton. Minard said that he doesn’t believe that the acquisition of OCRS by Genesee & Wyoming will affect local service.
