Capital Metro and Watco Companies sign great new deal for freight rail

Just before Christmas, Capital Metro and Watco Companies Austin Western Railroad LLC (AWRR) finalized a new agreement for freight service along the Giddings to Llano rail line owned by Capital Metro. The Giddings to Llano line is a total of 163 miles long and includes the 32 mile MetroRail Red Line.

Allan Roach and Linda S. Watson shake hands after signing the five-year agreement.

The Capital Metro board approved the agreement on Dec. 21, and Freight Rail Manager Charlie DeWeese, CEO Linda S. Watson and Watco Companies Senior Vice President of Business Development Allan Roach spent the remainder of the afternoon finalizing the details so they could ink the deal. Both parties had a considerable incentive to finalize the agreement before the end of 2010 so that AWRR can file for federal 45G tax credits as part of the new tax deal worked out between Congress and President Obama. By agreement, Capital Metro could receive an estimated $600,000 of the total tax credits AWRR qualifies to receive. Happy Holidays, indeed. Continue reading “Capital Metro and Watco Companies sign great new deal for freight rail”

Capital Metro to Contract with New Rail Provider for MetroRail

Capital Metro terminated its rail contract with Veolia today, but is expected to award a new contract with another rail provider this afternoon. Here is the text of the news release.

Capital Metro Terminates Rail Contract with Veolia
Board will vote on new passenger and freight rail contracts this afternoon

December 9, 2009

Austin, Texas – Capital Metro terminated its rail operations and maintenance contract with Veolia Transportation today. At this afternoon’s Board of Directors Work Session and Board Meeting, staff will present for approval two new contracts:

1) Herzog Transit Services, Inc. for MetroRail operations and rail maintenance
2) Watco Companies, Inc. for freight rail operations

Continue reading “Capital Metro to Contract with New Rail Provider for MetroRail”