Lancaster and Chester Sold to Gulf & Ohio

Joe the Photog · 08-31-2010, 07:35 PM

The word is coming down that the L&C is being sold to the G&O. Looking for more information, but about to have to pick the kids up from school.

Joe the Photog · 08-31-2010, 08:39 PM

Here's more

http://www.lcni5.com/cgi-bin/c2.cgi?...15801151151013

ShortlinesUSA · 09-01-2010, 02:55 AM

Joe, I think a lot of us knew this was coming at some point. I hate to see you lose "your" shortline, much as some of us up here felt when the Maryland Midland went to Genesee & Wyoming. One thing I will say is that I think the G&O will be a good parent to the L&C, unlike if one of the larger conglomerates had picked them up.

I see a lot of the discussion on Carolina Rails, and theories of things quickly being repainted. Let me add a point on that-- we are in uncharted territory with this acquisition by G&O. Most of the properties they've bought over the years have been small in size. I just don't see them being in a huge rush to paint everything, especially since they aren't necessarily flush with power or big leasers of power, for that matter.

Also, their fleet consists of all EMDs, end cabs are still around and even being purchased from other sources, as well as GP38s and GP40s. L&C's fleet fits nicely with this theory, so I don't foresee any big changes at all. The future could hold some interesting locomotives for the L&C, as well. G&O's Knoxville Locomotive Works is turning out some interesting projects, including slugs and possibly even some extensive rebuilds in the not so distant future.

So, while we indeed are losing one of the classic shortlines of the south, I do hold out much more hope for it under G&O's stewardship than I would under a lot of other companies out there. If some others were grabbing the reins, I'd be right there with the masses lamenting that the L&C was "gone" but I think we're entering an interesting new chapter in the life of an old shortline with this development. Time will tell.

Joe the Photog · 09-01-2010, 12:58 PM

Quote:

Originally Posted by ShortlinesUSA

Joe, I think a lot of us knew this was coming at some point.

That is certainly true. The Springs family has literally sold everythig they've owned from the textile mills (which moved out of country) to the insurance company they had. In some ways, I'm surprised they held on this long. I had been hearing rumors for 12 to 18 months. One of them had the NS looking into it, which I would have found surprising since 30 miles of the L&C is ex-NS sold to them within the last ten years. RailAmerica was said to be sniffing around the door too.

Quote:

Originally Posted by ShortlinesUSA

I see a lot of the discussion on Carolina Rails, and theories of things quickly being repainted.

Lots of worst case scenarios being presented on Carolina Rails, one being that they may cut back the line east of Circle S when (not if, according to this theory) ADM closes in Kershaw. I wasn't so worried about them repainting the current L&C fleet since the paint is less than two years old on all of them. I'm less worried now that John Jones e-mailed and apparently spoke with Clauseen. The G&O will apparently own the Springmaid logo and Jones says the fleet will stay blue. As I expected, the GMTX leasors will eventually be returned and replaced by GP38-3s. I saw your last post that there is an ex-Southern GP38 in Knoxville now being rebuilt that may be the first G&O power on the L&C.

Could be an interesting time, and I do see your point that this could be a best case scenario for the L&C. I wish it could have stayed local though.

SCFrankie · 09-04-2010, 12:26 AM

Joe, it is never fun to see one of your favorite shortlines go.. Several of my favorites were assimilated by the orange and black Borg, G&W. Fortunately G&O is usually pretty good about keeping their railroads running well. They have never abandoned any of their lines, although a few of them have been sold (for better or worse).

I also saw on Carolina Rails about 2886 possibly becoming a GP38-3. 2886 was from the original Norfolk Southern, so it would be neat to see it come that much closer to its old home. G&O actually had 3 others from the old NS, but I lost track of them a long time ago.

Joe the Photog · 09-08-2010, 10:15 PM

I'm kinda looking forward to the change over. Hoping the news reports are right and no one loses their job. Claussen has been quoted as saying he's keeping the blue paint. I'd like clarification on that -- whether he means he won't repaint the current fleet (and why should he? The paint is less than two years old.) or if he means any new power will come blue. (I'm doubtful on that.)

In hindsight, perhaps the worse buyer for any railroad would actually be R.J. Corman. Seems that way the L&C would lose it's color and it's name.

Joe the Photog · 10-21-2010, 01:37 AM

http://www.stb.dot.gov/decisions/Rea...hlight=0,35414

http://www.stb.dot.gov/decisions/Rea...5?OpenDocument

I don't speak lawyer, but it looks like the L&C Railway is becoming the L&C Railroad, at least on paper.

ShortlinesUSA · 10-21-2010, 02:32 PM

In lawyer-ese, though I am not one, the more important aspect is that they are becoming a limited liability company (LLC) in the process. Basically means creditors can only take assets of the company in a bankruptcy case, rather than come take the Claussens' house, cars, etc., unless some type of fraud or other willful misconduct led to the bankrupctcy filing.

These little "railway" to "railroad" or vice versa intricacies have taken place many times over the years to signify a change in ownership, and are important in the records of history, so thank you for pointing this out, Joe!

Joe the Photog · 12-31-2010, 10:10 PM

I'm still looking for official word that the L&C is now G&O. Their respective web sites have not been updated. The G&O web site still lists the "press release" while the L&C site still touts the company as being "privately owned." Which I guess would still fit either way.

I did have a stupid railfan dream last night. I dreamt the G&O sent a black engine to the L&C. It was a steam engine!

ShortlinesUSA · 01-01-2011, 03:31 PM

Just checked with a friend at G&O, and the deal closed mid-December. He was, however, unable to confirm your stupid railfan dream...

Joe the Photog · 01-04-2011, 08:59 PM

Quote:

Originally Posted by ShortlinesUSA

Just checked with a friend at G&O, and the deal closed mid-December.

I appreciate the update, Mike.

Quote:

Originally Posted by ShortlinesUSA

He was, however, unable to confirm your stupid railfan dream...

Well, I once dreamed that the L&C had nine end cabs. This was in roughly 1995 when they had three SW900s. The next year, they started buying more end cabs and by 1998.... they had nine of them.

KGilliam · 01-05-2011, 03:55 AM

Quote:

Originally Posted by Joe the Photog

I did have a stupid railfan dream last night. I dreamt the G&O sent a black engine to the L&C. It was a steam engine!

For what it's worth, the question of whether one might ever see steam making a visit to the other G&O lines was posed at the Railfan Weekend on the Three Rivers Rambler in September. The answer was that it has actually been discussed as a possibility. Considering G&O said they considered bidding on Milwaukee 261 when it was up for sale to run on the Yadkin Valley, I'd say steam on the L&C isn't totally out of the ballpark.

Maybe your dream isn't as weird as it sounds...

Joe the Photog · 01-05-2011, 09:33 PM

You should see me. I'm dancing the jig right now.

Joe the Photog · 03-09-2011, 06:09 PM

Latest I hear (second hand from a fellow railfan who spoke to some guys in Chester on the crew) is that the G&O will be sending down three GP38-3s from the Yadkin Valley to replace the GMTX leasors. No word on when this would happen. They also said the YVRR units would be painted L&C blue soon upon arriving on the L&C.

John Ryan · 03-10-2011, 01:31 AM

That is positive news that they will paint them to match. Hopefully they will also number them into a similar series.

ShortlinesUSA · 03-10-2011, 05:42 PM

I'd take that report with somewhat of a grain of salt, as the YVRR only has two GP38-3s to give! They are KLWX 2268 and 2273, and wear TM/KCS gray with yellow chevrons. That, however, would seem to make sense that they would send the only units on the G&O roster not in corporate colors to the L&C if the intent is to get a coat of paint on them.

KLW is rebuilding some GP38-3s from older GP38 cores in Knoxville, so a third may come from there. I heard early on from G&O that the leasers would be going back, so this is more of a matter of when, not if. Personally, I'd love to see one of those ex CN GP40-2Ls in L&C blue, but I guess we'll just have to wait and see.

Thanks for the continued updates, Joe.

ShortlinesUSA · 04-05-2011, 02:48 AM

KLWX 2268 is in the shop at Knoxville now, and after some minor mechanical work, will head for the L&C shop and blue paint. A new era is close by!

Joe the Photog · 04-05-2011, 05:40 PM

Thanks, Mike. Keep us updated and I'll keep an eye out when I'm in Lancaster or Chester in a few weeks.

SCFrankie · 04-12-2011, 01:46 AM

This could be a shortlived ownership change, according to the recent news on G&O's sale of 3 shortlines: "In its filings with the STB, RailAmerica said G&O owner Pete Claussen
“has decided to sell these lines to RailAmerica’s affiliates in order to
transition out of the railroad business.”

Joe the Photog · 05-13-2011, 03:42 PM

Per a post on carolina Rails, KLWX #2273 was spotted trialing two GMTX units through Fort Lawn, SC this morning with a train for ADM. If it's just arriving, they may leave it in Lancaster. Here's a shot of it I found on RRPA --

http://rrpicturearchives.net/showPic...spx?id=2190930

Joe the Photog · 05-19-2011, 04:41 AM

Today in Fort Lawn, SC

ShortlinesUSA · 05-19-2011, 01:45 PM

One can only hope G&O follows through on their intent to paint new arrivals in Springmaid blue. New power should be on the way soon. Between the lines in Alabama and the Nash County, there should be about 6-8 units freed up, and most are GP38s. I was really hoping they would send over one of the GP40-2Ls from the YVRR, as I think a safety cab unit would look great in the L&C blue.

Thanks for posting the shot, Joe.

Joe the Photog · 05-19-2011, 03:46 PM

I'm with you on the GP40-2Ls. They may need more power. This train was crawling through Lancaster yesterday with the four GP38s.

SCFrankie · 05-20-2011, 05:16 PM

Quote:

Originally Posted by ShortlinesUSA

One can only hope G&O follows through on their intent to paint new arrivals in Springmaid blue. New power should be on the way soon. Between the lines in Alabama and the Nash County, there should be about 6-8 units freed up, and most are GP38s. I was really hoping they would send over one of the GP40-2Ls from the YVRR, as I think a safety cab unit would look great in the L&C blue.

Thanks for posting the shot, Joe.

The Wiregrass Central had 3 GP40-2Ls, maybe they will go to the L&C?

Joe the Photog · 05-20-2011, 05:22 PM

I saw a picture on RRPA of GMTX GP38-2 #2624 which had been on the L&C up in Hamlet from last month. That leaves three leasors to be replaced.