Wednesday, February 18, 2009

Buyer named in Middletown & New Jersey Railway sale

Received the following via email.

Feb. 11 news blurb from RAILWAY TRACK & STRUCTURES Magazine:

Buyer named in Middletown & New Jersey Railway sale

Chartwell Inc. will sell the Middletown & New Jersey Railway to Regional Rail LLC for $450,000, according to Chartwell's quarterly report filed Feb. 11 with the Securities and Exchange Commission, local newspapers report.

Chartwell bought the shortline railroad in 2006. The tracks run from Middletown to Unionville and the New Jersey state line, and in the M&NJ's heyday its tracks were used to move milk, livestock and feed, coal, lumber and people.

When Chartwell bought the railway, there was a public outcry over the company's original plans to use the line to ship trash. That plan had died by mid-2007, and the M&NJ's sole customer now is Genpak.

Regional Rail is a subsidiary of East Penn Railroad, which owns a number of shortline rail companies in eastern Pennsylvania.

Michael Sussman of Strategic Rail Finance, which handled the sale, confirmed the deal. Chartwell had already sold off the 60 rail cars it owned to Tealinc Ltd., in a $1,374,000 cash deal that closed on Jan. 30.

web site of Middletown & New Jersey