Five companies were selected in a competitive bid process organized by the city of New Orleans for choosing a private operator for the Public Belt Railroad. The value of the deal is more than USD 60 million. In the final competitive round, the five companies will be asked for more details plans and a firm financial offer. That request for proposals is scheduled to be released later this month, and a company is scheduled to be picked in June.
The Public Belt Railroad’s assets include tracks connecting industry to the Port of New Orleans and the Huey P. Long Bridge. The city has asked for a minimum of USD 20 million upfront payment and USD 1 million a year in a 40-year lease, although the five companies vying for the deal each offered more money, along with promises of capital investments in infrastructure and strategies to grow future business.
MidRail, based in New York, offered a USD 55 million upfront payment to the city and USD 76 million in total lease payments, which the city’s analysts calculated to be worth USD 88 million when discounted to reflect present-day value. MidRail was top-ranked by the committee.
Genesee & Wyoming and Oaktree Capital Management, a partnership that offered USD 20 million upfront and USD 113 million in lease payments, calculated as a total of USD 66.5 million in present-day value. G&W-Oaktree got the second-highest overall rating.
Anacostia Rail Holdings, based in Chicago, offered USD 22 million upfront and USD 83 million in lease payments, calculated as USD 58 million in present-day value. Anacostia was ranked third by the committee.
OmniTRAX, based in Denver, offered a USD 30 million upfront payment and USD 78 million in lease payments, calculated as USD 64 million in present-day value. The company ranked fourth.
Watco Companies, based in Pittsburg, Kansas, offered USD 24 million upfront and USD 69 million in lease payments, calculated as USD 54 million in present-day value. The company ranked fifth.
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