An Illinois-based company has acquired two railroad lines in middle and south central Tennessee, citing the region's access to major highway and waterway corridors as a main reason for its expansion, as well as the possibility of developing future land for the rail business and job creation in Tennessee.
Ironhorse Resources acquired the Sequatchie Valley Railroad and the Walking Horse and Eastern Railroad, renaming them the Sequatchie Valley Switching Company and the Walking Horse Railroad. Ironhorse is the parent company of 10 operating companies and administrative manager of all of the companies owned by CGX Inc.
Sequatchie Valley Railroad is an 11.5-mile short line railroad serving south central Tennessee from a connection with CSXT at Bridgeport, Alabama. It provides freight service for various commodities including gypsum, drywall, plastics and rail car storage, according to Ironhorse.
Walking Horse Railroad is a 7.76-mile short line railroad that connects Shelbyville to CSX Transportation at Wartrace, Tennessee.
Walking Horse provides freight service for various commodities, including soybean oil, molasses, plastics and rail car storage.
"As we've continued to pursue growth and acquisitions throughout our franchise, we have specifically targeted growth in Tennessee to bolster our operational efficiencies and marketing presence in the region," said Ironhorse President Matt Cundiff.
Company officials said the appeal of expanding into middle and south central Tennessee was for operational efficiencies and economic opportunity. Cundiff said the newly acquired rail lines "will add diversification to our commodity base, increase our relationship with the CSX and provide the ability to market industrial sites available on both railroads and rail connectivity to the Tennessee River."
Ironhorse has operated the Caney Fork & Western Railroad, which runs from Tullahoma to Sparta, Tennessee, since 2005.
"It's more efficient to run three railroads in a region than one," said Jeff Baskett, executive vice president.
The company said there are eight employees across their three Tennessee railroads now.
Baskett said there is an inventory of developable property, and they would like to work with land owners, developers, counties, Tennessee Valley Authority and the Tennessee Department of Economic & Community Development to market and hopefully develop to create more jobs and rail business in the state.
Contact staff writer Allison Shirk Collins at ashirk@timesfreepress.com, @AllisonSCollins or 423-757-6651.