The board for the Texas State Railroad gave its approval for a tentative offer to have Western Group (Arizona) take over operations of the railways.
The Western Group would have to upgrade the Texas State Railroad’s two depots and the train cars. The tentative contract would call for a five-year term on the lease and an up-front initial payment of USD 150,000. The Western Group will also pay an additional USD 50,000 a year, starting in January 2018. Additional funds will be paid toward the loan and infrastructure loan, and the company will work on long-term planning.
Three other groups submitted proposals for taking over the operations: Progressive Rail, First Transit, and Railmark Holdings. The Texas State Railroad’s contract with Iowa Pacific is scheduled to end in May.
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