The Northeast Texas Rural Rail Transportation District Board of Directors discussed their lack of operator agreement, approved the Topline rates, and approved the signing of the Conroe Wood Products Credit application during their board meeting on Thursday, Jan. 29, at the office of the Sulphur Springs Economic Development Corporation office.
No action was take regarding an operator agreement. NETEX expected to be working on an operator agreement during the meeting, however the company looking to take over is working on the backside to put an agreement together. The company is preparing by having met with their customers, met with the EDC and set up meetings with the Class 1 partners.
The company is looking to do a short-term agreement for roughly two years to get the railway completely updated, followed by a long-term agreement.
During the board’s discussion, they talked about how this short-term agreement is probably a way for the company to test the market and see where business is at. The board is looking for an ongoing agreement for as long as possible from a company that is willing to fund fixing the rail, but is willing to hear out further details with this company if they have a draft agreement by the next meeting in March.
The NETEX board discussed and approved the Topline HDZ MSA rates. The board must vote on these rates as part of their agreement with HASA, fixing the railways. According to managing principal for The Freedom Rail Group LLC (parent of NETC) Mike Salek, the rates for Topline’s services are more than reasonable and competitive in the current market.
Repairs will take place between the HASA Switch, the last switch on the railroad, all the way to the CPKC interchange in Sulphur Springs, being brought to a Class 1 service. Any defect that sits on 100 feet on either side of any crossing or bridge will be brought into the Class 1 repairs, and any vegetation issues surrounding the bridges will also be resolved, according to Salek.
The boarded voted to approve the Conroe Wood Products credit application, which is a new vendor application to purchase ties for the rail as part of the HASA repair agreement. Salek is now able to begin ordering materials towards those repairs.
Upcoming
The next meeting will be at 1:30 p.m. on March 5, unless a special meeting is needed to be called before then.
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.