RailTex
Encyclopedia
RailTex was a transportation holding company
that specialized in owning and operating short line railroads
across North America
.
Based in San Antonio
, Texas
, the public company was a leader in making unprofitable lines shed by Class I railroads into viable transportation routes.
The company was sold on February 4, 2000 and merged into RailAmerica
.
in 1975.
Seeking to broaden the revenue base he purchased the San Diego and Imperial Valley Railroad
. Operating the railroad the company quickly developed a formula for a series of successful takeover the short line railroad including:
In 1986 it acquired its second Austin and Northwestern Railroad
.
In 1989 it sold its rail car business to Chrysler
.
The company went public in 1993 trading on NASDAQ
under the sign RTEX.
At the time of its acquisition by RailAmerica it had 26 railroads over approximately 4,100 route miles in the southeastern, midwestern and New England regions of the United States, as well as Eastern Canada and Mexico. The acquisition was valued at $325 million.
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
that specialized in owning and operating short line railroads
Rail transport
Rail transport is a means of conveyance of passengers and goods by way of wheeled vehicles running on rail tracks. In contrast to road transport, where vehicles merely run on a prepared surface, rail vehicles are also directionally guided by the tracks they run on...
across North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
.
Based in San Antonio
San Antonio, Texas
San Antonio is the seventh-largest city in the United States of America and the second-largest city within the state of Texas, with a population of 1.33 million. Located in the American Southwest and the south–central part of Texas, the city serves as the seat of Bexar County. In 2011,...
, Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
, the public company was a leader in making unprofitable lines shed by Class I railroads into viable transportation routes.
The company was sold on February 4, 2000 and merged into RailAmerica
RailAmerica
RailAmerica, Inc., based in Jacksonville, Florida, is a holding company of a number of short-line railroads and regional railroads in the United States and Canada....
.
History
Railtex was founded in 1977 by Bruce Flohr a business that leased rail cars. Flohr had invested $50,000 of his own money and had investor help for another $50,000 from investors. Flohr had started as a Southern Pacific train-crew brakeman in 1965 and rose to superintendent of Southern Pacific's San Antonio Division until he became deputy administrator of the Federal Railroad AdministrationFederal Railroad Administration
The Federal Railroad Administration is an agency in the United States Department of Transportation. The agency was created by the Department of Transportation Act of 1966...
in 1975.
Seeking to broaden the revenue base he purchased the San Diego and Imperial Valley Railroad
San Diego and Imperial Valley Railroad
The San Diego and Imperial Valley Railroad is a freight operator on the San Diego and Arizona Eastern Railway from San Diego, California to San Ysidro, California . The SD&IV has been owned and operated by RailAmerica since 2000; it had been previously owned by RailTex and operated with the...
. Operating the railroad the company quickly developed a formula for a series of successful takeover the short line railroad including:
- Taking over only railroads where he could operate on a non-union basis - Railtex trains operated with two employees paid $10 to $15 an hour while union trains operated with three to four paid an average of $25 an hour. Railtex employees were called transportation specialists or "transpecs,"
- Deploying three marketing managers rather than the usual one for the line and then marketing to businesses five to 10 miles from the track as opposed to the usual next the track customers
- Purchasing older locomotives which could be acquired for a fraction of new locomotives.
In 1986 it acquired its second Austin and Northwestern Railroad
Austin and Northwestern Railroad
The Austin and Northwestern Railroad began construction on a rail line west of Austin, Texas, USA, toward Llano on April 20, 1881. The railroad was originally built as a narrow gauge line with plans to connect to the Texas and Pacific Railway at Abilene...
.
In 1989 it sold its rail car business to Chrysler
Chrysler
Chrysler Group LLC is a multinational automaker headquartered in Auburn Hills, Michigan, USA. Chrysler was first organized as the Chrysler Corporation in 1925....
.
The company went public in 1993 trading on NASDAQ
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
under the sign RTEX.
At the time of its acquisition by RailAmerica it had 26 railroads over approximately 4,100 route miles in the southeastern, midwestern and New England regions of the United States, as well as Eastern Canada and Mexico. The acquisition was valued at $325 million.