Contrans buys Canadian division of RailAmerica
WOODSTOCK, Ont. — Contrans Corp. has acquired the most of the operating assets of RailAmerica subsidiary Steel City Carriers and will lease its terminal facility in Sault Ste. Marie, Ont.
Steel City, which is expected to add $8 million in annual revenue, will operate within the Laidlaw Carriers subsidiary of Contrans.
Additionally, as part of a newly-formed strategic alliance, Contrans will buy new trailers from Kalyn Siebert Canada, a RailAmerica subsidiary based in Trois-Rivieres, Que., within the next 60 days. Kalyn Siebert builds customized bulk trailers for hauling solid waste, agricultural, and construction products
Both parties also agreed to pursue rail/truck intermodal opportunities throughout North America.
“The transaction is certainly a ‘win-win’ situation for both parties as Laidlaw gains new customers and an entre into a new region, while RailAmerica benefits from new business for our truck trailer manufacturing division,” said RailAmerica chairman, president, and CEO Gary Marino.
“Even more exciting is the synergistic opportunities that we both may realize through the new business initiatives available to us in the North American intermodal marketplace.”
Based in Boca Raton, Fla., RailAmerica operates 12 railroads over approximately 2400 route-miles in eight U.S. states and Chile.
Contrans Corp. had fiscal 1998 revenues of almost $200 million. Through its subsidiaries, Laidlaw Carriers and Brookville Carriers, Contrans operates a fleet of 900 tractors and 1500 trailers throughout North America.
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