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Wednesday, March 30, 2005 |
Another piece of the Cheap-Labor Conservative NAFTA puzzle falls into place as a KCS is poised to acquire the largest railroad company in Mexico. The Usual Suspect is confident that this cross-border alliance will be used, not to raise the wages and standard of living of Mexican rails, but to drag everyone else down to Third World levels. A rising tide raises all boats. An anchor drags everyone down.
KCS shareholders OK acquisition of TFM
(The Associated Press circulated the following story on March 29.)
KANSAS CITY, Mo. -- Railroad company Kansas City Southern Industries Inc. said Tuesday its shareholders have approved its acquisition of Mexican rail line Transportacion Ferroviaria Mexicana, or TFM.
Kansas City Southern, which will pay transportation company Grupo TMM $660 million in cash and stock for its 51 percent share in the railroad, said it will complete the purchase and take over TFM on April 1.
The vote ends a long series of legal and financial wrangling for TFM, the largest railroad company in Mexico, which Kansas City Southern plans to fold into its existing system under the new name Nafta Rail.
Shareholders on Tuesday approved issuing 18 million shares of common stock in conjunction with the acquisition, in addition to other shares in certain circumstances.
Kansas City Southern shares fell 49 cents, or 2.6 percent, to close at $18.65 in Tuesday trading on the New York Stock Exchange. The stock has been trading at a 52-week range of $12.60 to $20.34.
12:16:23 PM 
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Your tax dollars at work. FRA loans Illinois Short Line $5.5 million to "rehabilitate rail infrastructure, expand business opportunities." The Riverport Railroad "provides switching operations for BNSF" and is, we are sure, union represented. No? Anyone have info on this? On a local note, anyone know if Progressive Rail, the non-union encroacher that has been invited onto UP property here to sniff around and scout out new "business opportunities" has a line on any tax-payer dollars? If they do, or even if they don't, do you have an opinion on the matter? Let us know.
Short line railroad in Northwest Illinois receives $5.5 million loan to rehabilitate rail infrastructure, expand business opportunities
The Riverport Railroad, LLC, a short line operator located in Northwestern Illinois, is receiving a more than $5.5 million loan from the Federal Railroad Administration to rehabilitate rail-related infrastructure and facilities that were once part of the Savanna Army Ordnance Depot. Funding from the Railroad Rehabilitation and Improvement Financing (RRIF) program will be used to improve and consolidate about six miles of existing track to make operations more efficient and install new, heavier track to handle 286,000-pound railcars. In addition, yard storage capacity will be increased by 33 percent (from 3,000 to 4,000 railcars) and real estate will be acquired to support its planned business expansion.
Currently, the Riverport Railroad, LLC, primarily provides switching operations for BNSF and stores, cleans and maintains empty railcars. The RRIF loan will help the railroad expand its business to include a bulk commodity yard where trainloads of product will be stored until sold; a transload facility where product is stored in on-site warehouses or transferred directly between train and truck; and a marshalling yard where trains up to 110-units long can be stored. In addition, a portion of the funding will be used to remove and relocate about 9.6 miles of track from land owned by the U.S. Fish and Wildlife Service.
The Riverport Railroad, LLC, was created in 1995 to lease and subsequently purchase 68 miles of rail and related assets following closure of the former Savanna Army Ordnance Depot. Its operations commenced in 1999. The railroad, owned by Flagship Capital LLC, currently has eight employees and serves approximately 30 customers.
11:55:17 AM
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