Posts Tagged ‘railroad sales’

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.