The Northeast Texas Rural Rail Transportation District (NETEX) Board of Trustees held the regularly scheduled board meeting on Monday, May 5 at the Sulphur Springs-Hopkins County Economic Development Center.
The board immediately went into executive session to discuss the lease agreement with TNW Corporation. There was no further action taken once the board reconvened.
Co-founder of the Freedom Rail Group and managing principal of the Northeast Texas Connector (NETC) Mike Salek gave the monthly operator update. In March, they had 98 freight cars, and are down 26 this month, at 72 cars. According top Salek, the issue should be rectified and more cars should be back on the line next month. Last year in April the line had 65 cars, seven less than this year.
There was a mainline derailment in Sulphur Springs mostly likely due to leading edges, according to Salek.
All of the approach repairs from the HASA agreement are compete. These repairs begin at the HASA switch in Greenville to the Canadian Pacific Kansas City interchange in Sulphur Springs. Vegetation is still left to compete.
Salek notified the board that NETC is coming up on an insurance renewal. Down payments on a premium for NETC are approximately $125,000.
“Let’s get TNW on board, let’s get them transitioned,” Salek said.
There is also 90 days guaranteed of minimum earned pay to be paid out, causing Salek to have to pay for additional months even if the deal was set in June.