CHICAGO Hannibal Real Estate LLC and Carload Express
Inc. plan to operate the 12.2-mile Omal Railway line in Monroe
County, Ohio, in a move the firms said would return freight
rail service to the region.
White Plains, N.Y.-based Hannibal and Oakmont, Pa.-based
Carload Express, a short-line railroad company, said that Ohio
Terminal Railway Co., a subsidiary of Carload, will operate as
a common carrier short-line railroad connecting with Norfolk
(Va.) Southern Corp.s North American rail network.
Besides returning freight service to Monroe County, the
development will provide rail access to the Hannibal Industrial
Park, owned by Hannibal Real Estate, and Hannibal, Ohio-based
aluminum producer Ormet Corp., the two companies said in a
release dated Wednesday.
The Omal Railway is also expected to help bolster growth in the
wet gas- and oil-producing portions of the nearby
Utica and Marcellus shales, the two companies said. The
combination of new rail service and property available in the
industrial park is a natural fit to service the emerging
shale-gas drilling industry in the region, they said.
Oil and wet gas, or natural gas liquids (NLGs),
fetch a premium to dry natural gas, which has seen prices
tumble to a point that makes some wells uneconomical.
Hannibal Real Estate acquired the former Ormet Rolling Mills
and the operating rights to the Omal Railway in 2007, it said.