RailAmerica sells Vancouver Island rail line
RailAmerica Inc. today sold the 181-mile E&N Railway in Vancouver Island, British Columbia, to the non-profit organization Island Corridor Foundation for about $1.15 million.
Under the terms of the agreement, RailAmerica will receive about $850,000 in cash and a promissory note for about $300,000 from the sale of contract and regulatory rights associated with the rail operation. RailAmerica anticipates being able to use about $4.3 million in tax benefits in Canada from the charitable gift donation.
The Island Corridor Foundation will use the railroad for passenger service. RailAmerica’s subsidiary, E&N Railway, will continue to operate the railroad until operations are transferred to a new railway operator, on or before June 30.
RailAmerica is a holding company for over 40 short-line railroads with roughly 8,000 track miles in the United States and Canada.