illinoiscentral
SARM Volunteer
Hello Community,
I am very pleased to announce a very special merger of two Trainz Railroads that you may or may not be familiar with.
I have included an article written in co-op from the two presidents.
NASHVILLE-Nashville, Tennessee based Kentucky and Tennessee Railway Corporation and Coal Creek, Tennessee based Volunteer Line Railroad have been negotiating terms of a merger for almost a year…the time has come to close this deal.
The Showman Comes on the Scene-
The Kentucky and Tennessee has long been news to the rail man and rail fan alike, with it’s emergence into the railroad business scene with President George W. Bush, Governor Phil Bredesen and Legendary Evangelist Billy Graham on hand, KT President T.A Wood has never failed to impress.
Just twelve years after a group of small time investors sat around a card table discussing their future railroad, the group has formed a big time railway monster and has made itself one of the nation’s premier freight carriers, rivaling performances by Class 1 Railroads such as Canadian National/Illinois Central and Norfolk Southern.
Kentucky and Tennessee moved at what seemed an unstoppable pace, gobbling up small shortlines, various regionals and the Paducah & Louisville railroad and one division of RJ Corman LLC.
Expansion of freight and the introduction of it’s own commuter railroads in Knoxville and Nashville, plus the introduction of Amtrak’s Volunteer Rocky Top have built a solid bottom line for the system.
This year Wood set his eyes on the Volunteer Line Railroad, a medium sized “Mom & Pop” operation based out of the small city of Coal Creek, Tennessee.
Continued on page two,
Mom and Pop Own a Railroad-
The Volunteer Line Railroad was founded on November 26th, 1971 when the Volunteer Holding Company leased the former Southern Railway branch lines that now make up the VL.
David Goldstein, a former Southern Railway manager worked tirelessly, and determined to build a community railroad.
One that has served as a model for others for over 35 years.
Goldstein had a purpose in mind, make a railroad that could be profitable, and help the community at the same time.
It was Goldstein’s philosophy that earned the VL the nickname, “A Community Railroad” within the railroad world.
The Volunteer operations are much like the name conjures up; a large regional railroad that operates locked track age in Tennessee and southern Kentucky that isn’t serviced by anyone who doesn’t enter through Coal Creek, The Volunteer has built a tradition on coal and hardly a consist moves without coal being the backer.
Over time as consists have gotten heavier and heavier so has track maintenance, and in many areas the Volunteer has fallen behind.
Mergers and Talks of Mergers-
Early in 2009 there were rumors and rumblings of the KT buying out the Volunteer Line Railroad.
The immediate response was what would one another want with each other?
Indeed the operations were polar opposites with different ideas and values.
Kentucky and Tennessee was interested in VLR because of it’s chance to bypass KT’s former G&O Holston River tracks, a rough, windy 10mph stretch that connects KT’s Cumberland Division with it’s Knoxville-Charlotte N.C line.
Volunteer Line’s large fleet of Electro-Motive diesels were also an interest to KT.
But the prize of the buyout would be KT owning those locked routes into VLR coal country.
Kentucky and Tennessee has a contract with Tennessee Valley Authority to deliver coal to it’s Kingston, Tennessee power plant, one that KT has ¼ part in with Norfolk Southern, due to the fact that the Wilder Mine does not supply enough coal for the plant, thus NS brings coal from Virginia.
However all that could change with Volunteer Line on board. 98% of VLR’s traffic is coal, therefore KT could very well oust Norfolk Southern from Kingston’s shadows.
Could KT President T.A Wood take Kentucky and Tennessee where Tennessee Central, Family Lines, Southern and Illinois Central Gulf failed?
Kentucky and Tennessee management officers took their first trip over VLR tracks aboard KT’s impressive OCS lead by it’s FP9’s 9701 and 9703 with an eight car train behind.
The breaking point of negotiations is unknown, but it is said to have been on Goldstein’s side his inability to let go of his railroad.
Stories of Wood walking around the Coal Creek yard with Goldstein are common as weeks turned to months and months ended the year.
The Merger Finally Takes Place, far from the expected-
The Opry Land hotel was chosen for the announcement with a large picture of Kentucky and Tennessee’s ES44AC Hybrid
“Gary M. Wright” parked nose to nose with VLR’s SD40-2
“Morey Goldstein” chosen as the backdrop.
During the speeches it was clear that both companies were different, yet somewhat the same too.
The final agreement was a shock to the entire rail industry which had been watching the two from the start.
A new Company, entitled “Southeastern Rail Corporation LLC” would take control of both Companies, with both Goldstein and Wood taking a 50/50 share in the company which would own the Volunteer Line and Kentucky and Tennessee.
It has worked out good for both companies, VLR now has access to take it’s products into Georgia, Alabama, North Carolina and Northern Kentucky.
KT now can oust NS from it’s threshold on TVA contracts, bypass Downtown Knoxville and fill the need for motive power on it’s trains.
Both companies are bound to enjoy the profits and power…and perhaps just a nice sit on the porch of KT business car “Tommy K. Martin” enjoying sweet tea and sharing old stories.
This could be huge.
-illinoiscentral & Red_TVRM
Welcome to a new era, aboard the Kentucky and Tennessee and Volunteer Line Railroads.
Cheers,
Woody
I am very pleased to announce a very special merger of two Trainz Railroads that you may or may not be familiar with.
I have included an article written in co-op from the two presidents.
NASHVILLE-Nashville, Tennessee based Kentucky and Tennessee Railway Corporation and Coal Creek, Tennessee based Volunteer Line Railroad have been negotiating terms of a merger for almost a year…the time has come to close this deal.
The Showman Comes on the Scene-
The Kentucky and Tennessee has long been news to the rail man and rail fan alike, with it’s emergence into the railroad business scene with President George W. Bush, Governor Phil Bredesen and Legendary Evangelist Billy Graham on hand, KT President T.A Wood has never failed to impress.
Just twelve years after a group of small time investors sat around a card table discussing their future railroad, the group has formed a big time railway monster and has made itself one of the nation’s premier freight carriers, rivaling performances by Class 1 Railroads such as Canadian National/Illinois Central and Norfolk Southern.
Kentucky and Tennessee moved at what seemed an unstoppable pace, gobbling up small shortlines, various regionals and the Paducah & Louisville railroad and one division of RJ Corman LLC.
Expansion of freight and the introduction of it’s own commuter railroads in Knoxville and Nashville, plus the introduction of Amtrak’s Volunteer Rocky Top have built a solid bottom line for the system.
This year Wood set his eyes on the Volunteer Line Railroad, a medium sized “Mom & Pop” operation based out of the small city of Coal Creek, Tennessee.
Continued on page two,
Mom and Pop Own a Railroad-
The Volunteer Line Railroad was founded on November 26th, 1971 when the Volunteer Holding Company leased the former Southern Railway branch lines that now make up the VL.
David Goldstein, a former Southern Railway manager worked tirelessly, and determined to build a community railroad.
One that has served as a model for others for over 35 years.
Goldstein had a purpose in mind, make a railroad that could be profitable, and help the community at the same time.
It was Goldstein’s philosophy that earned the VL the nickname, “A Community Railroad” within the railroad world.
The Volunteer operations are much like the name conjures up; a large regional railroad that operates locked track age in Tennessee and southern Kentucky that isn’t serviced by anyone who doesn’t enter through Coal Creek, The Volunteer has built a tradition on coal and hardly a consist moves without coal being the backer.
Over time as consists have gotten heavier and heavier so has track maintenance, and in many areas the Volunteer has fallen behind.
Mergers and Talks of Mergers-
Early in 2009 there were rumors and rumblings of the KT buying out the Volunteer Line Railroad.
The immediate response was what would one another want with each other?
Indeed the operations were polar opposites with different ideas and values.
Kentucky and Tennessee was interested in VLR because of it’s chance to bypass KT’s former G&O Holston River tracks, a rough, windy 10mph stretch that connects KT’s Cumberland Division with it’s Knoxville-Charlotte N.C line.
Volunteer Line’s large fleet of Electro-Motive diesels were also an interest to KT.
But the prize of the buyout would be KT owning those locked routes into VLR coal country.
Kentucky and Tennessee has a contract with Tennessee Valley Authority to deliver coal to it’s Kingston, Tennessee power plant, one that KT has ¼ part in with Norfolk Southern, due to the fact that the Wilder Mine does not supply enough coal for the plant, thus NS brings coal from Virginia.
However all that could change with Volunteer Line on board. 98% of VLR’s traffic is coal, therefore KT could very well oust Norfolk Southern from Kingston’s shadows.
Could KT President T.A Wood take Kentucky and Tennessee where Tennessee Central, Family Lines, Southern and Illinois Central Gulf failed?
Kentucky and Tennessee management officers took their first trip over VLR tracks aboard KT’s impressive OCS lead by it’s FP9’s 9701 and 9703 with an eight car train behind.
The breaking point of negotiations is unknown, but it is said to have been on Goldstein’s side his inability to let go of his railroad.
Stories of Wood walking around the Coal Creek yard with Goldstein are common as weeks turned to months and months ended the year.
The Merger Finally Takes Place, far from the expected-
The Opry Land hotel was chosen for the announcement with a large picture of Kentucky and Tennessee’s ES44AC Hybrid
“Gary M. Wright” parked nose to nose with VLR’s SD40-2
“Morey Goldstein” chosen as the backdrop.
During the speeches it was clear that both companies were different, yet somewhat the same too.
The final agreement was a shock to the entire rail industry which had been watching the two from the start.
A new Company, entitled “Southeastern Rail Corporation LLC” would take control of both Companies, with both Goldstein and Wood taking a 50/50 share in the company which would own the Volunteer Line and Kentucky and Tennessee.
It has worked out good for both companies, VLR now has access to take it’s products into Georgia, Alabama, North Carolina and Northern Kentucky.
KT now can oust NS from it’s threshold on TVA contracts, bypass Downtown Knoxville and fill the need for motive power on it’s trains.
Both companies are bound to enjoy the profits and power…and perhaps just a nice sit on the porch of KT business car “Tommy K. Martin” enjoying sweet tea and sharing old stories.
This could be huge.
-illinoiscentral & Red_TVRM
Welcome to a new era, aboard the Kentucky and Tennessee and Volunteer Line Railroads.
Cheers,
Woody
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