The Northeast Texas Rural Rail Transportation (NETEX) District board discussed a long-term lease agreement with TNW Corporation, the Northeast Texas Transportation Summit, membership to the Texas Short Line and Regional Railroad Association, a possible injury claim, payment ratifications and updates regarding a HASA agreement at their regularly scheduled board meeting on Thursday, March 5.
Operator lease agreement
There is no operator agreement, but representatives from TNW Corporation were present to discuss a line lease agreement. TNW Director of Sales and Marketing Dan Blank and Chief Operating Officer Bobby Franklin went over what the company has done over the past few months and goals for the NETEX rail.
According to Blank, the company has looked at the entirety of the NETEX line and asked how they are getting to their customers to better understand what those businesses’ needs are. TNW met face-to-face with all customers on the NETEX line, learning their needs and what constraints they have, according to Blank. They have also met up with Economic Development Corporation to understand the future growth for the area, as a whole.
TNW representatives also met with Union Pacific and Canadian Pacific Kansas City lines to understand the interline agreements and the relationship between NETEX and those Class I partners.
They also need to understand the infrastructure of the rail line to get it up to an operating standard to help the region grow, according to Blank.
According to Franklin, TNW met with the Federal Rail Association and the Texas Department of Transportation prior to stepping on the line. TNW estimates it will cost roughly $50 million to rehabilitate the line, conduct safety inspections, and transfer employees and equipment. Multiple Class II defects were found and need immediate repair.
TNW is going to apply for the Consolidated Rail Infrastructure and Safety Improvements (CRISI) Program, which could provide funding to improve the safety, efficiency and reliability of passenger and freight rails.
TNW is drafting a contract to go over with the NETEX Board, who voted to have a special meeting at 1:30 p.m. March 26. NETEX Board will discuss and possibly accept a longterm lease agreement with TNW.
Other Business Ratification of payments to NETC for work pursuant to the HASA agreement, and updates regarding the agreement were given during the meeting. The board has the funds from the escrow agreement and will make the payment directly to Topline HDZ for repairs on the rail.
The HASA agreement updates from managing principal for The Freedom Rail Group (parent of Northeast Texas Connector) Mike Salek include beginning in the Greenville area and working towards Sulphur Springs. All of the bridges, approaches, deviations, ties and sinkholes are all currently under repair, according to Salek.
The board discussed a possible bodily injury claim sustained from an incident on Feb. 12 in Sulphur Springs. NETEX attorney Ron Stutes received a letter from a district attorney on behalf of an employee bodily injury claim. According to Stutes, this is the first he’s heard of this claim and there are currently no recorded documents of it.
Salek explained to the board the employee was injured on the rail and had spinal fusion surgery on vertebrae 4 and 5. Insurance and the Federal Railroad Association are aware of the situation.
Railroads do not operate under Workers’ Compensation due to the Federal Employers’ Liability Act, according to Salek. However, they are working with this employee, keeping him on payroll during his injury and have light-duty work that he can perform after his recovery.
The NETEX membership for the Texas Short Line and Regional Railroad Association has been payed for the 2026 year.
The board approved up to $440 for members of the board to participate in the Northeast Texas Transportation Summit on April 2.
The board recognized Hunt County Judge Bob Stovall for his recent achievement as Greenville Citizen of the Year. He was honored and awarded during the Greenville Chamber of Commerce banquet on Feb. 6.
About NETEX
The Northeast Texas Rural Rail Transportation District is an established governmental subdivision of the state of Texas representing six contiguous counties across Northeast Texas. Initiated in 1994, NETEX includes Titus, Franklin, Hopkins, Hunt, Delta and Collins counties. NETEX encompasses 65.6 miles of railroad and 23.2 miles of right of way, for a total railroad corridor of 88.8 miles. This line was originally the “C-branch” mainline of the St. Louis Southwestern Railway.