NEW YORK, Nov. 23 /PRNewswire/ -- New York Regional Rail Corporation (OTC Bulletin Board: NYRR) Vice President, W. Robert Bentley, announced that, as a result of the agreement entered into several weeks ago between NYRR and STI East, Inc., an affiliate of Stockton Transmodal, Inc., a new, third-party entity has been formed, called "Liberty Transmodal, Inc."
Mr. Bentley, who is also President of NYRR's operating subsidiary, the Cross Harbor Railroad, explained that this new joint venture would be responsible for establishing trans-load bulk operations at Cross Harbor's rail facilities on both sides of the Hudson, including Bush Terminal Railroad Yard in Brooklyn, and Greenville Yard located in Jersey City, N.J.
Liberty Transmodal, Inc. is in the process now of identifying necessary financing of between $6 and $7 million dollars to pay for targeted improvements of the Railroad's facilities which will be called upon to facilitate this increased movement of rail-freight. These infrastructure investments will be used to upgrade all operational components, such as reinforced pierage and float-bridges, additional track capacity, paving for increased intermodal operations, and the installation of various machinery and structures needed to support this comprehensive terminal operation.
With the start-up of Liberty Transmodal operations just weeks away, and the long-awaited entrance of Norfolk Southern (NSC) and CSX Transportation (CSXT) into the NY/NJ/LI Metro Region, now forecast for the first quarter of '99, these targeted improvements will be needed soon to support this increased rail-freight traffic. In addition, three hundred 20-foot containers have been ordered from Venezuela Container Corp. for various transport services, about to commence as part of this new and exciting freight business venture.
NYRR's Cross Harbor RR will directly benefit from Terminal Handling Fees at both facilities, and will be the recipient of STI East's extensive marketing program targeted at its own, existing national trans-bulk customer base. In addition, NYRR's Cross Harbor Railroad will realize its usual transportation fees, associated with its signature trans-Harbor rail-freight service. As an added feature, all parties will benefit from an extensive marketing effort toward back-haul operations, and the revenues that will flow therefrom.
Within the first three years, combined marketing, terminal, and rail system revenues are projected to gross in the millions of dollars, with substantial net revenues per year to the Railroad for the transport side of the operation, in addition to its share of terminal operations, as mentioned above.
"The formation of this new business initiative comes at a time of great opportunity for our Railroad, and our Region," said Mr. Bentley. "We announced, just one week ago, that the Cross Harbor had signed a 'Handling Agreement' with the Norfolk Southern Railway Company, to cooperate in the development and movement of rail-freight commerce into this metro region, through our unique car-floating system," he continued.
All indications are that the Port of New York & New Jersey will be experiencing substantial growth in annual container movements over the next five to fifteen years. In turn, the purchase and subdivision of Conrail by Norfolk Southern (NSC) and CSX Transportation (CSXT) will mean an unprecedented increase in rail-freight commerce, the likes of which has not been seen in this region for over twenty years.
Stockton Transmodal, Inc., headquartered in Northern California, currently serves over 90% of the "Fortune 500" companies that move freight by trans-bulk throughout the U.S. It is expected that, within the first three years of operation, this strategic partnership will be able to attract both a wide variety and high volume of freight commodities into NYRR's Cross Harbor Railroad system.
STI is known as the premiere trans-load, bulk terminal operator in Northern California. When it comes to handling both food and general freight commodities, STI has amassed a demonstrated track record of meeting and exceeding all client company expectations. In fact, STI has received four superior ratings from the American Institute of Baking, as well as a "Superior" or A+ rating from the Plastics industry, and more recently, a prominent Salt Company Executive mentioned at an annual corporate meeting, that STI should be admired as the standard by which all terminal operators should be judged.
Its extensive service menu includes trans-shipment, storage and packaging operations, as well as managing and inventory controls. Specialized services include steam heating, certified on-site scale procedures, inspection and sampling systems, filtering and blending, product testing and "bill-of-lading" operations. It is also Kosher-certified and was granted this certification by KOFC and the Orthodox Union. It is anticipated that STI will bring many of these service features to the Liberty Transmodal operation, in conjunction with New York Regional Rail.
Bulk Products include the following product groups: Plastic Pellets, such as Polyethylene, Polyvinyl Chloride (PVC), Polystyrene, Orlon, Polypropylene, Plexiglass, Lucite, Teflon and PTFE; Food Products: Corn Syrup, Fruit Juices, Potable Water, Wine, Grains, Flour, Alfalfa Pellets, Corn Sweeteners, Sugar, Calcium Chloride; Oil-Based Products: Edible Oils, such as Corn Oil, Saffron Oil, Olive Oil, and Sesame Oil, as well as Asphalt and Residual Fuel.
These products will originate from manufacturers and packagers located throughout the country. For example, increased plastics movements are expected to come from as far away as the West Coast and the Gulf of Mexico. Edible oils and corn syrup (used for the production of cola) will be emanating from such states as Iowa, Kansas, and Nebraska.
New York Regional Rail Corporation (OTC Bulletin Board: NYRR) is the operator of the New York Cross Harbor Railroad, which is recognized as the only rail-freight marine operation in New York Harbor and "the Direct Link to the National Rail-Freight Network."
NYRR's Cross Harbor Railroad transports rail-cars via tug-propelled car-floats between its Greenville Yard in Jersey City, N.J. and the Brooklyn waterfront in New York City. The system takes 35 to 45 minutes to cross the Harbor and 20 minutes for loading or unloading on either side, creating a direct conduit for freight movement into and out of the New York City and Long Island marketplace, while at the same time relieving the Metro Region's overburdened highway system and trans-Harbor crossings.
The Railroad recently announced the establishment of a rail-freight "Handling Agreement" with the Norfolk Southern Railway Company, operating subsidiary of the Norfolk Southern Corporation.
SOURCE New York Regional Rail Corporation
/CONTACT: Gregory C. Kisloff of New York Regional Rail, 718-788-3690/
(NYRR)
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