Ann Arbor Railway - Rail America

[AARR]

Don't remember anyone saying it was 100% going to happen today.

Someone said they thought it would happen today but it didn't and that's the way these things go.

[chapmaja]

The original report indicated the announcement was to be made on Nov. 5th, so maybe it was made after hours and thus the big market watching publications did not pick up on what for them is best described as a minor transaction.

The Ann Arbor Railroad website has never had a press release of any kind posted and has always said "Under Construction".


Rail America hasn't had a history of being lightening quick on releasing information either, so maybe the announcment was made an nobody except railfans really care.

Maybe the announcement was delayed for some reason. It wouldn't be the first time that a purchase / merger deal was supposed to be announced on a certain day and nobody heard anything.


I do know for a fact that the ownership of the AA has been looking at getting rid of the railroad for a number of years. I worked with the son of a big wig of the Ann Arbor Railroad and I was told that by him.

[OwlCaboose2853]

The original report indicated the announcement was to be made on Nov. 5th, so maybe it was made after hours and thus the big market watching publications did not pick up on what for them is best described as a minor transaction.

The Ann Arbor Railroad website has never had a press release of any kind posted and has always said "Under Construction".


Rail America hasn't had a history of being lightening quick on releasing information either, so maybe the announcment was made an nobody except railfans really care.

Maybe the announcement was delayed for some reason. It wouldn't be the first time that a purchase / merger deal was supposed to be announced on a certain day and nobody heard anything.


I do know for a fact that the ownership of the AA has been looking at getting rid of the railroad for a number of years. I worked with the son of a big wig of the Ann Arbor Railroad and I was told that by him.

Probably, they had been taste bad soup, RA dislike a Class 1/4 or 1/2 than Class I. Maybe, am I wrong?

[sd70accsxt700]

Don't remember anyone saying it was 100% going to happen today.

It was said by more then a couple people that by the end of October first week November it was a done deal.

[AC60CW]

They could even just be waiting to announce it on the 17th at their fall conference.

[midland sub]

Who said the deal isn't done? It's a bit more complicated than buying a car on a Saturday afternoon, "sign hard, hard copies". RA took about 6 months longer than expected to finalize and announce the deal for the Alcoa terminal lines back in 2008. Nothing is going to change if and when it does happen. Don't really get all the hub bub that's gone on anyway. I guess that's what puts the foam in foamers...

[chapmaja]

I have been thinking more about why RA is trying to get the AA (supposedly)

I understand the trackage in Toledo with it's substantial customer base.

I understand the possibility of using it as a connection to Toledo for some of the other lines RA has.

There is something about this that doesn't make a lot of sense, unless there is much more to the story than we know.

I know in the past NS has tried ridding itself of the Michigan Central line from Willow Run to K'zoo.

With the grant for high speed rail service likely to allow the State of Michigan to purchase this line, could RA have some motive for wanting the AA.

Is it possible that RA wants to try getting operating rights over this line of NS sells the line and pulls off, which it seems is very possible they want to do. By getting the AA, that gives RA a connection (would need major work to be used) between the NS in Toledo and the Michigan Central line customers.

It's just something I'm throwing out there, but is it possible that RA wants this line and could use the AA as a stepping stone to this?


For the record if NS does give up service on this line, I would guess Grand Elk would get the first dibs on the line. I don't think JAIL has proven enough yet to say they could do it.


This is just one of these wierd possibilities I'm tossing out there.

[AARR]

OK RAIL AMERICA...YOU CAN MAKE YOUR !@#$%^&* ANNOUNCEMENT ANY TIME NOW

[TrainWatcher]

*Sniffs*

I smell an irrevelvent FAIL Don.....

[chapmaja]

OK RAIL AMERICA...YOU CAN MAKE YOUR !@#$%^&* ANNOUNCEMENT ANY TIME NOW

I was thinking the same darn thing.

I am wording if something isn't going on though. I have them with what appear to be hi-rail trucks on the line through Ann Arbor a couple times in the last week, when I haven't seen that in a long time before.

I suspect there is some truth to the rumors of RailAmerica wanting this operation.

I suspect also that there are a couple major sticking points. One might be the Saline plant. If RA was agreeing on a price with the Saline plant included and they've stopped shipping via the AA, that could have a major impact on the purchase price.

Second is possible trackage rights from Ann Arbor to Durand over the GLC. In some cases deals have been contingent upon an agreement being reached over another railroads lines. That could be a holdup in this deal as well.

[GP30M4216]

I was in Saline last week and they are shipping by rail still. The boxcars in Milan are for storage, not transload. I watched an AA train last week bring something like 16 boxcars up and switch them into Saline.

[AARR]

I was in Saline last week and they are shipping by rail still. The boxcars in Milan are for storage, not transload. I watched an AA train last week bring something like 16 boxcars up and switch them into Saline.

When auto companies stop shipping by rail often they'll remove the racks from the box cars. Box cars go in empty w/ racks but come out empty w/o racks. Hope that's not what's happening here.

It looks like Saline still gets plastic pellets by rail judging from GLC 392's picture in another thread.

[midland sub]

It did happen....check out Y@'s paper railroad thread...

If it weren't for a few all knowing "experts" here, those that are in the position to know some inside info might just be more willing to share. Just takes a couple know it all foamers to ruin for the rest. Ever notice how some members have stopped posting recently? Business deals are a bit more complicated than playing Monopoly.

[sd70accsxt700]

Well im a real railroader, and I will back AARR, the man has connections that some realrailroaders could only dream of. It just like you said the other day, may be taking longer then expected.

[AARR]

I was hired to kill this deal so my client, a wall street rat, could make $$$$$. I too became filthy rich off the deal. I used this board to accomplish my scheme. You are all my tools and now that my mission is completed I have no further use for you so you're dismissed .

I like discussing railroad rumor and speculation. The "what ifs" are fun to banter about. In my many years of railfanning I've learned that maybe less than 1% or rumor becomes reality.

[midland sub]

The expert comment wasn't directed towards AARR. He's what makes something like this work. He's always asking questions and sharing what he knows.

An interesting comparison is the time it took GWI to buy the Ohio Central. It took over a year for that deal come together and JJJ denied anything was going on the entire time. Doesn't make good business sense to let the world know you're negotiating the sale of the company.

Well im a real railroader, and I will back AARR, the man has connections that some realrailroaders could only dream of. It just like you said the other day, may be taking longer then expected.

[AARR]

An interesting comparison is the time it took GWI to buy the Ohio Central. It took over a year for that deal come together and JJJ denied anything was going on the entire time. Doesn't make good business sense to let the world know you're negotiating the sale of the company.

While JAIL deal was going down people who knew about it were declaring it was "railfan rumor" but after deal was done admitted it took 3 years to close

[willardgarrett]

Annie has starting lost services the Fingerle Lumbers yard, Ferry Yard, Saline Plant, Holcim Inc. (Dundee Cement Plant).

I know that Holcim is still operating, from what I smelled when I drove by, and by the car and truck traffic on the plant access road. Did they stop shipping by rail???

[OwlCaboose2853]

Annie has starting lost services the Fingerle Lumbers yard, Ferry Yard, Saline Plant, Holcim Inc. (Dundee Cement Plant).

I know that Holcim is still operating, from what I smelled when I drove by, and by the car and truck traffic on the plant access road. Did they stop shipping by rail???

I found these an article: http://www.monroenews.com/apps/pbcs.dll ... /111129986 Holcim (US) Inc. said Tuesday the poor economy will force it to close its Dundee cement-making plant permanently by mid-2009, ending a nearly 50-year run and causing the loss of 163 jobs.

[willardgarrett]

Annie has starting lost services the Fingerle Lumbers yard, Ferry Yard, Saline Plant, Holcim Inc. (Dundee Cement Plant).

I know that Holcim is still operating, from what I smelled when I drove by, and by the car and truck traffic on the plant access road. Did they stop shipping by rail???

I found these an article: http://www.monroenews.com/apps/pbcs.dll ... /111129986 Holcim (US) Inc. said Tuesday the poor economy will force it to close its Dundee cement-making plant permanently by mid-2009, ending a nearly 50-year run and causing the loss of 163 jobs.

Well, they haven't. That's a gaurantee, unless there's another source of that sulphuric smell that was there long before the new engine plant was built, and the dry bulk trucks are all driving back there for something else. I didn't get a chance to see if there were any covered hopper cars spotted there, but the plant is still going strong as of two weeks ago.