Shortline Railroads

RII has worked with hundreds of short line railroads to assist with solving problems, growing business and succeeding. Short line railroad have unique concerns from larger Class I railroads regarding costs, revenues, capabilities, capacity, regulations, personnel and the local communities they serve. RII understands these differences to ensure hands-on, responsive service for short lines. RII has been able to assist short line railroads with all of the following services:
+Evaluations for any purpose, including right of way, track, equipment and other facilities+Assistance in defining, training, planning for and complying with railroad regulations+Turn key operations for railroad start ups, ownership transfers and special orders (incl. personnel training, +UMLER and RMI registration, customer agreements)+Assistance with filings and applications with STB, FRA, DOT, etc.+Development of cost-saving operating plans, economic analysis and rate development for profitability+Market development, including growing traffic with existing customers as developing new business +Developing agreements with customers, property owners, connecting carriers, joint facilities, etc. to ensure client interests+Develop ancillary services, public tariffs, profitable pricing, including for unit trains and other special service

Projects

State Rail Plans for multiple states
RII has developed all short line railroad profiles and analysis for 6 states on State Rail Plans. Work has included surveys of all short lines, developing an inventory of rail assets, total traffic volumes, business development opportunities and developing potential issues and projects for funding. Most recently, work in New Jersey included 15 short line railroads, transloads across the state and all port and intermodal facilities, including the busiest port in the country, Port of New York and New Jersey for New Jersey Transit. Work on the Georgia State Rail Plan included all 29 short line railroads within the state and physical inspections and maintenance schedules for the 6 state-owned short lines. Prior to that, the Arkansas State Rail included similar services on all short lines within the state for funding options. Previous work in Montana included analysis of all branch lines within the state to determine which ones were still viable based on operating costs and current traffic levels. Previous states where RII performed similar work included Nevada and Washington.
Sierra Railroad Company Valuations
RII has developed valuations for this railroad holding company and its assets for various purposes over the last 15+ years. Such appraisals have included a Replacement Cost Values for public entity acquisitions under condemnation, NLV’s for RRIF Loan applications and OFA filings; FMV’s for potential easements and complete Net Liquidation Value (NLV) for all railroad assets including 3 short line railroads and related support facilities for stock valuation, collateral for financing and internal planning. Valuations have included inspections and valuation of Evaluations have included all track assets, detailed real estate assets including specialized industrial and hospitality properties, and extensive equipment fleet of locomotives, rolling stock, vintage passenger equipment, heavy maintenance of way equipment, vehicles, machinery and tools.
Squaw Creek Southern Business Development
RII has assisted this short line company to continue building its railroad operation holdings. Work has included advisory assistance on improving operations, developing railroad economics to ensure pricing covers costs, assistance developing proposals to take over additional operations and development of marketing plans for each railroad.
Grenada Railway and Natchez Railway Turnkey Operation
RII assisted V&S Railways when it took over operations of these two short line railroads in Mississippi from Canadian National Railways. For the first 6 months, RII supplied all operating personnel, provided training and supervision, filed all required FRA materials on personnel, track and equipment, registered all equipment and personnel with the appropriate entities, contacted all customers and developed the public tariff, created all new customers agreements and solved all issues until the operations could be gradually taken over by V&S personnel and management.
Short Line Railroad Appraisals
RII has performed literally hundreds of valuations for short line railroads for purposes from collateral for financing, sales or acquisition, stock valuation and lease negotiation to assistance with federal filings, estate tax planning, legal proceedings and easement values. Appraisals have been from simple desktop reports for internal planning or small private lenders to complex formal USPAP quality appraisals needed for public, legal or large funding purposes. RII is familiar with all railroad assets including track, right of way, equipment, machinery and tools, vehicles, maintenance of way equipment and yard structures, in addition to rail business and its focus on carloads, commodities, capital intensive maintenance and upgrades, labor requirements and contracts, fuel consumption of locomotives, track and equipment locomotives, etc. RII has developed all types of appraisals from NLV, FMV and Replacement cost, to GCV, EBITDA and DCF, including special analyses such as ROI, market driven revenue projections, special discounting for partnerships and LLC's, Corridor analysis and premiums, special easement values and encroachments.