STB holds CSX track sale for more details

The U.S. Surface Transportation Board wants to understand the relationship between a prospective buyer of tracks in Georgia and Alabama and short-line railroad operator OmniTRAX.    The U.S. Surface Transportation Board wants more details about the relationship between a prospective buyer of CSX tracks in Georgia and Alabama and short-line railroad operator OmniTRAX before signing off on the deal.
   Specifically, HGS Railway Holdings, including HGS-ATN and HGS-FCR, was set up to purchase the tracks from CSX. 
   “There appears to be some relationship between HGS Holdings and OmniTRAX Holdings Combined Inc., a non-carrier holding company that controls approximately 18 Class III rail carrier subsidiaries,” STB said in its decision on Friday. “Not only do the two companies share an address, but it also appears that Kevin Shuba is the president/chief executive officer of HGS Holdings and OmniTRAX.”
   HGS’ proposed track purchase includes 55 miles in Atlanta that it wants to add to the Fulton County Railway’s operations and another 121 miles in Alabama for planned use by the Alabama & Tennessee River Railway. 
   The petition with the STB to purchase the tracks from CSX was filed by both HGS-ATN and HGS-FCR on March 22.