RailAmerica President and CEO John Giles said, "We are pleased to maintain this railroad as part of our portfolio and continue our relationship with CP under this new operating agreement. The current operation remains an attractive enterprise for both us and CP. We look forward to a productive, long-term relationship with CP and the customers of the OVRR."
The OVRR operation primarily transports pulp, paper and allied products. The Company will adjust historical financial statements to reflect OVRR as a continuing operation. For the six months ended June 30, 2010, the effect of this adjustment is that $0.7 million of income previously reported in discontinued operations will now be reported in continuing operations.
RailAmerica, Inc. owns and operates short line and regional freight railroads in North America, operating a portfolio of 40 individual railroads with approximately 7,300 miles of track in 27 U.S. states and three Canadian provinces.