OmniTRAX announced Monday, Feb, 23, 2015 that its affiliate, Peru Industrial Railroad, Inc., is purchasing Peru Rail Line from the short line’s namesake Illinois City.
Peru Industrial Railroad will run freight service on three miles of track starting immediately, OmniTRAX said.
Local media reported the sale price for the 3-mile line was about $1.25 million, with the sale becoming final on Thursday, Feb. 19. The Peru City Council approved the deal on Wednesday, Feb. 18. Peru, Ill., lies roughly 100 miles west of Chicago.
Peru Industrial Railroad has a direct connection with Illinois Railway, LLC, also managed by OmniTRAX, and Illinois Railway will commit $10 million to upgrading the newly acquired line. Together, the two rail lines add up to 116 miles of track, interchanging with BNSF Railway, Norfolk Southern, Canadian Pacific, Canadian National, and CSX. Traffic handled includes frac sand, industrial products and other commodities, OmniTRAX said.
"The rail line is a natural add on for OmniTRAX and will create great freight and development opportunities for the City of Peru, said OmniTRAX CEO Kevin Shuba. "When combined with the Illinois Railway, this operation will provide our customers with needed services, while delivering new jobs and economic growth to LaSalle County and beyond."
Peru, Ill., Mayor Scott Harl said; "The City of Peru started on the Illinois River and authorized its first railroad in 1887. The City is at the crossroads of two interstate highways and owns a regional airport. This sale further enhances the City's position as a center of transportation logistics and we look forward to working with Peru Industrial Railroad to further develop that industrial corridor."