Posts Tagged ‘Lake Terminal Railroad’

U.S. Steel Selling 6 Railroads

June 10, 2021

U.S. Steel’s Transtar subsidiary has reached a deal to sell six of its railroads including two in Lorain.

The railroads are being sold to a subsidiary of Fortress Transportation and Infrastructure Investors for $640 million.

The sale agreement includes a 15-year contract to maintain operations at the six railroads.

The railroads include the Lake Terminal Railroad, which serves Republic Engineered Products and Lorain Tubular in Lorain and the Lorain Northern, is the contract switching carrier at U.S. Steel’s Lorain Tubular steel pipe plant.

Also included in the sale is the Union Railroad, which operates 65 miles of main track and 200 miles of yard tracks within a 10-mile radius in the Pittsburgh region.

The Union hauls steel, coke, coal, chemical, aggregate, lumber, and automotive industries.

Other railroads involved include the 15.46-mile Delray Connecting Railroad in Detroit; the 63-mile Gary Railway, which serves mills run by U.S. Steel and ArcelorMittal in Indiana among other customers; the Fairfield Southern in Alabama; and the Texas & Northern in East Texas.

The sale is expected to close in the third quarter of this year subject to regulatory approval.

Transtar Looking to Unload Railroad Properties in Ohio, Pennsylvania, Michigan and Indiana

June 26, 2020

Railroads owned by United States Steel Corporation may be for sale, Trains magazine reported on Thursday.

The report said the railroads, which are held by U.S. Steel’s Transtar subsidiary, are on the block as the steel maker struggle during a recession triggered in part by the COVID-19 pandemic.

The company is expected to announce a loss of $315 million in the second quarter of 2020 and is reportedly seeking to sell various real estate properties.

U.S. Steel declined to comment about the matter, but Trains cited “multiple rail industry sources” as saying the railroads would be placed on the sale block soon.

The company has suspended operations at much of its Great Lakes Works near Detroit, as well as the idled various production lines at plants in Indiana, Ohio, Pennsylvania, and East Texas.

Among the Transtar rail properties is The Lake Terminal Railroad, which serves Republic Engineered Products and Lorain Tubular in Lorain as well as the Lorain Northern, a contract switching carrier at the Lorain Tubular steel pipe plant.

Pittsburgh-based Transtar also owns the Union Railroad, which operates 65 miles of main track and 200 miles of yard tracks in Pittsburgh. The Union carries steel, coke, coal, chemical, aggregate, lumber, and automotive industries.

In Michigan, Transtar operates the 15.46-mile Delray Connecting Railroad, which serves U.S. Steel’s Great Lakes Works outside of Detroit.

In Indiana, Transtar owns the 63-mile Gary Railway, which serves steel mills of U.S. Steel and ArcelorMittal as well as other customers.

Transtar also owns railroads in Alabama and Texas.

U.S. Steel is moving away from large integrated steel plants in favor of mini-mills, which it has said are more efficient than integrated steel mills.

Something Out of the Ordinary in Akron

February 14, 2020

It is the late 1960s in Akron where the Pennsylvania Railroad or Penn Central is using Lake Terminal EMD SW8 No. 822 as a yard switcher in the yard northwest of the Firestone Tire and Rubber Company plant.

In the top image, Lake Terminal 824 is in the yard in South Akron.

In the next image, Lake Terminal 822 is working while Lake Terminal 824 sits in the engine facility.

The third image was made more than likely soon after the Feb. 1 merger of the PRR and New York Central.

The fourth image shows one of the Lake Terminal switches with PRR SD45 No. 6178 at the Akron engine facility.

Photographs by Robert Farkas