RailAmerica completes Michigan acquisition

RailAmerica completes Michigan acquisition    Shortline railroad holding company RailAmerica Inc. said it reached agreement to buy the Central Michigan Railway Co. and integrate its network with five other nearby railroads it operates in Michigan.
   Central Michigan Railway, which operates 100 miles of track between Midland and Durand, moved about 30,000 carloads and had revenue of about $11 million in 2002. It has a direct connection with RailAmerica’s Huron & Eastern Railway and Saginaw Valley Railway. Central Michigan Railway also interchanges traffic with Canadian National, CSX Transportation, Lake State Railway Co. and the Tuscola & Saginaw Bay Railway. With the acquisition, the six RailAmerica railroads will operate a combined total of about 500 miles of track and double freight carloads in the state.
   Major customers include Dow Chemical and Consumers Energy.
   RailAmerica, which owns 49 regional railroads in North and South America and Australia, said it expects to derive savings from coordinating the operation of the five railroads. The deal is expected to close within 60 days, pending regulatory and shareholder approval.