Thoroughbred Shortline Program
Encyclopedia
The Thoroughbred Shortline Program was a system of shortline
creation devised by Norfolk Southern
in the late 1980s. It involved an alternative to the typical practice of a Class I
railroad selling rail lines outright to shortlines in the post-Staggers Act
era. Defining features of the program included leasing lines to shortline operators as opposed to outright sales, keeping stations available in Norfolk Southern marketing campaigns, and crediting carloads delivered to Norfolk Southern towards the lease and eventual purchase of the line. The program ran from 1988 to 1991, creating more than a dozen new shortline railroads, nearly all of which are still in operation today.
Norfolk Southern explored the creation of its own rationalization program in 1987 with the goal of reorganizing 2700 miles (4,345.2 km) of low density lines spread throughout their 27000 miles (43,452.2 km) of track. 1500 miles (2,414 km) of track were abandoned outright, with the remaining tracks slated to be distributed to shortlines. The result was the creation of the Thoroughbred Shortline Program.
Shortline railroad
A shortline railroad is a small or mid-sized railroad company that operates over a relatively short distance relative to larger, national railroad networks. The term is used primarily in the USA and Canada...
creation devised by Norfolk Southern
Norfolk Southern Railway
The Norfolk Southern Railway is a Class I railroad in the United States, owned by the Norfolk Southern Corporation. With headquarters in Norfolk, Virginia, the company operates 21,500 route miles in 22 eastern states, the District of Columbia and the province of Ontario, Canada...
in the late 1980s. It involved an alternative to the typical practice of a Class I
Class I railroad
A Class I railroad in the United States and Mexico, or a Class I rail carrier in Canada, is a large freight railroad company, as classified based on operating revenue.Smaller railroads are classified as Class II and Class III...
railroad selling rail lines outright to shortlines in the post-Staggers Act
Staggers Rail Act
The Staggers Rail Act of 1980 is a United States federal law that deregulated the American railroad industry to a significant extent, and replaced the regulatory structure that existed since the 1887 Interstate Commerce Act.-Background:...
era. Defining features of the program included leasing lines to shortline operators as opposed to outright sales, keeping stations available in Norfolk Southern marketing campaigns, and crediting carloads delivered to Norfolk Southern towards the lease and eventual purchase of the line. The program ran from 1988 to 1991, creating more than a dozen new shortline railroads, nearly all of which are still in operation today.
Background
The period following railroad deregulation under the provisions of the Staggers Rail Act of 1980 spawned a plethora of railroad rationalization programs. In addition to outright abandonment of low density routes many of the more promising lines were sold to shortline operators. A reoccurring problem was that many of these new railroads were often so overburdened by the costs of purchasing the infrastructure they operated on that they lacked the capital to expand their customer base and improve their railroads.Norfolk Southern explored the creation of its own rationalization program in 1987 with the goal of reorganizing 2700 miles (4,345.2 km) of low density lines spread throughout their 27000 miles (43,452.2 km) of track. 1500 miles (2,414 km) of track were abandoned outright, with the remaining tracks slated to be distributed to shortlines. The result was the creation of the Thoroughbred Shortline Program.
The Program
A key fixture of the Thoroughbred Shortline Program included leasing, as opposed to selling, railroads to shortline operators. This spared the new startups from expensive costs of taking out loans for mortgage payments on the railroads. The second component of the program involved crediting carloads delivered to Norfolk Southern by the shortlines towards the lease. So long as the shortline could maintain the same annual carloads on the line as Norfolk Southern they owed no payments towards the lease. This also kept traffic directed on Norfolk Southern interchange points as opposed to competitors lines. Leases under the program spanned between 3 and 20 years, after which the shortlines had the option of purchasing the railroad outright.Shortlines Created
- Aberdeen, Carolina and Western RailwayAberdeen, Carolina and Western RailwayThe was incorporated in 1987 and operates on a former Norfolk Southern Railway branch line, running from Aberdeen to Star, North Carolina. It also leases track from Norfolk Southern between Charlotte and Gulf, North Carolina. It serves approximately 18 industries, mainly dealing in forest and...
- Carolina and Northwestern Railroad
- Carolina Coastal RailwayCarolina Coastal RailwayCarolina Coastal Railway is a shortline railroad.CLNA operates of line from Pinetown to Belhaven, North Carolina. CLNA interchanges with Norfolk Southern at Pinetown....
- Central Railroad of IndianapolisCentral Railroad of IndianapolisCentral Railroad of Indianapolis is a Class III short-line railroad that operates approximately miles of rail line in north central Indiana....
- Chattooga and Chickamauga RailwayChattooga and Chickamauga RailwayThe Chattooga and Chickamauga Railway is a short-line railroad which is headquartered in LaFayette, Georgia. The railroad operated twenty-two miles of the Tennessee, Alabama and Georgia Railway from Chattanooga, Tennessee to Kensington, Georgia, which went reverted to the Norfolk Southern System...
- Chesapeake and Albemarle RailroadChesapeake and Albemarle RailroadThe Chesapeake and Albemarle Railroad is a short-line railroad that operates of track from Chesapeake, Virginia to Edenton, North Carolina.The railroad was originally part of the Norfolk Southern Railroad, which continued south, crossing the Albemarle Sound and on to Mackeys Ferry and Plymouth...
- Commonwealth RailwayCommonwealth RailwayThe Commonwealth Railway, Inc. is a Class III short-line railroad operating of track of a former Norfolk, Franklin and Danville Railway line from Suffolk, Virginia, to Portsmouth, Virginia. The main office is in the Wilroy area of Suffolk. Commonwealth Railway is owned by Genesee & Wyoming Inc....
- Georgia and Alabama RailroadGeorgia and Alabama RailroadThe Georgia and Alabama Railway was formed in 1895 from the failed Savannah, Americus and Montgomery Railway. The G&A expanded rapidly, acquiring the Abbeville and Waycross Railroad and building it further South to Ocilla, GA, obtaining a lease from the Central of Georgia Railroad for trackage...
- Great Walton RailroadGreat Walton RailroadThe Great Walton Railroad is a class III railroad that operates of track in Georgia. In addition to its own line between Monroe and Social Circle, Georgia, the railroad operates the Athens Line, LLC and the Hartwell Railroad....
- Indiana Hi-Rail CorporationIndiana Hi-Rail CorporationIndiana Hi-Rail Corporation was a railroad which operated lines in the U.S. states of Indiana, Illinois and Ohio. It ceased operations after it was declared bankrupt in 1997....
- Indiana Rail RoadIndiana Rail RoadThe Indiana Rail Road is a United States Class II railroad, originally operating over former Illinois Central Railroad trackage from Newton, Illinois to Indianapolis, Indiana, a distance of 155 miles...
- North Carolina and Virginia RailroadNorth Carolina and Virginia RailroadThe North Carolina and Virginia Railroad is a short-line railroad that operates of track.The NCVA began operations in 1987 on a former Seaboard Coast Line Railroad from Boykins, Virginia, to Tunis in Cofield, North Carolina. The headquarters are in Ahoskie, North Carolina...
- Ogeechee Railway
- Pickens RailwayPickens RailwayPickens Railway is a shortline railroad operating on two separate divisions in the Upstate Region of South Carolina:* Easley to Pickens: * Anderson, through Belton to Honea Path:...
- South Carolina Central RailroadSouth Carolina Central RailroadThe South Carolina Central Railroad is a class III railroad that operates over on two separate track segments in South Carolina. Originally a RailTex subsidiary upon its start in 1987, the railroad passed to RailAmerica following their acquisition of RailTex in 2000.Primary commodities include...
- Yadkin Valley RailroadYadkin Valley RailroadThe Yadkin Valley Railroad is the trade name of the Piedmont and Atlantic Railroad and is a shortline railroad operating two lines leased from the Norfolk Southern Railway originating out of Rural Hall, North Carolina for a distance of...