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OmniTRAX, Inc.: A Leading Short Line Operator

Published: Augst 7, 2024

By: Adam Burns

Founded in 1986, OmniTRAX, Inc. has grown to become one of North America’s largest privately held short-line railroad operators and transportation management companies. OmniTRAX is a subsidiary of The Broe Group, a diversified, privately-held investment company based in Denver, Colorado.

The company's inception can be traced back to the acquisition of its first short-line railroad, the Great Western Railway of Colorado (GWR). This initial purchase marked the beginning of an expansive portfolio of railroads, which now spans across the United States and into Canada.

As an early adopter of strategic acquisitions, the company rapidly expanded its footprint throughout North America, capitalizing on the opportunity to serve localized industries and underserved rail markets.

Aside from rail operations OmniTRAX also provides real estate/business development, transload services, door-to-door shipping, terminal services, and rail car repair/storage.

Georgia & Florida Railnet GP40-2W #9636 at Albany, Georgia on December 12, 2008. Doug Kroll photo.

Growth and Acquisitions

OmniTRAX got its start in the 1980s like so many other short line holding companies of the era (RailAmerica, Pioneer RailCorp, Watco, etc.) thanks to the 1980 deregulation of the railroad industry, which allowed long-established companies (predominantly Class I's), among other things, more freedoms in abandoning or selling lines they no longer wanted.

As a result numerous short lines sprang up all across the country during the 1980s. OmniTRAX was formed in 1986 when it acquired the historic Great Western Railway of Colorado.

This system, not to be confused with another in Great Britain by the same name, was incorporated on October 16, 1901 by the Great Western Sugar Company to serve its sugar plants in Loveland and Greeley.

For many years the railroad moved sugar beets, molasses, processed sugar, and related products. It also handled passenger business until 1927. During the late steam era it became a favorite of railfans as it continued to operate the locomotive into the 1960s.

It remained under private ownership for eight decades until it was acquired by the newly formed OmniTRAX, Inc. in 1986. Today, the Great Western operates about 80 miles from Greeley to Fort Collins, as well as connecting Loveland, Longmont, and Milliken.

Its traffic base is no longer sugar-related but it moves a diversified range of freight including agricultural products, paper, plastics, sand, forest products, brewing grains, beer, and miscellaneous by-products. Of note, its original 2-10-0 Decapod #90 currently operates on the Strasburg Railroad in Pennsylvania.

Throughout the 1990s and 2000s, OmniTRAX established itself as a key player in the short-line railroad industry by acquiring and revitalizing railroads that had been deemed non-core by larger Class I railways.

The acquisitions spanned various regions and diversified the commodity mix handled by OmniTRAX, including agricultural products, chemicals, consumer goods, and energy-related products.

To understand the magnitude of OmniTRAX's growth, some of its notable acquisitions include:

- **Alberta’s Central Western Railway (CWR)**: Acquired in the late 1990s, this acquisition allowed OmniTRAX to expand into the Canadian market, providing crucial links between rural agricultural regions and major markets.

- **Browns, Oklahoma and Texas Northern Railroad (BTR)**: This acquisition further underscored OmniTRAX’s strategic interest in energy-rich regions, primarily serving the oil and gas industry.

- **Illinois Railway (IR)** and **Panhandle Northern Railroad (PNR)**: Strengthened OmniTRAX's presence in critical industrial corridors, enhancing its ability to serve a broad range of customers.

In 1987 it leased the Great Western of Oregon (no longer part of its network, sold in 1993) and then went on to acquire six more properties in 1991 which included:

• Chicago Rail Link: Merged with Chicago, West Pullman & Southern in 1996. Today it provides a 72-mile network in the Chicago area providing terminal/switching services to numerous customers.
• Manufacturers' Junction Railway: Providing switching services via 6 miles in Cicero, Illinois.
• Newburgh & South Shore Railroad: A historic switching line providing services in the Cleveland area.
• Kansas Southwestern Railway: Merged with the Central Kansas Railway in 2000 and today is part of Watco's Kansas & Oklahoma Railroad)

In 1997 OmniTRAX went international by taking over two systems in Canada including:

• Carlton Trail Railway: Located in Saskatchewan and the very large Hudson Bay Railway in Manitoba the short line utilizes more than 600 miles of ex-Canadian Pacific trackage with a traffic base that includes perishables, automobiles, construction material, heavy equipment, scrap metal, paper, concentrates, containers, fertilizer, and grain products (as of December, 2015 the company is attempting to sell this property to a group of northern Manitoba First Nations but thus far still controls the railroad).

Following a few years of leasing the Alabama & Tennessee River Railway and Fulton County Railway from CSX the Class I sold the properties to OmniTRAX in 2004.

A year later the company acquired the assets of North American RailNet which gave them access to the large, 500+ mile Nebraska, Kansas & Colorado Railway as well as the Georgia & Florida Railway and Illinois Railway.

In recent years OmniTRAX has continued expanding its network by taking over the historic Stockton Terminal & Eastern of California in 2011, Sand Springs Railway of Oklahoma in 2014 (a former interurban), and the Brownsville & Rio Grande International Railway in 2014 which serves the port of Brownsville

Total Railroad Holdings

In the present day, OmniTRAX operates over 20 short-line railroads across the United States and Canada, covering more than 2,400 miles of track.

The company’s success is rooted in its ability to provide tailored rail services to a wide array of industries, enhanced by its strategic location of rail networks near key markets and intermodal facilities.

• Alabama & Tennessee River 
• RailwayBrownsville and Rio Grande International Railroad
• Carlton Trail Railway
• Central Texas and Colorado River Railway
• Chicago Rail Link
• Cleveland & Cuyahoga Railway
• Decatur Central Railroad
• Fulton County Railway
• Georgia & Florida Railway
• Georgia Woodlands Railroad
• Great Western Railway of Colorado
• Illinois Railway
• Kettle Falls International Railway
• Manufacturers' Junction Railway
• Nebraska Kansas Colorado Railway
• Newburgh & South Shore Railroad
• Northern Ohio & Western Railway
• Panhandle Northern Railroad
• Peru Industrial Railroad
• Sand Springs Railway
• Stockton Terminal and Eastern Railroad
• Winchester and Western Railroad

Great Western Railway GP7 #1589 at Longmont, Colorado on September 25, 1985. Doug Kroll photo.

Diversification Beyond Rail

OmniTRAX's vision extended beyond operating railroads, leading to diversification into various transportation and logistics services. The company established OmniTRAX Logistics Services, aimed at providing comprehensive supply chain solutions to its customers. They have also ventured into industrial real estate through the development of rail-served industrial parks.

The creation of the **Adams County Industrial Park** in Colorado represents a fusion of rail infrastructure with real estate development, allowing OmniTRAX to offer end-to-end logistics solutions. This synergy between rail operations and industrial park development serves as a competitive advantage, attracting businesses that require integrated logistics capabilities.

Rail Operations

OmniTRAX’s rail operations are diverse, handling commodities ranging from agricultural products to metals and building materials. Key elements of its rail services include:

- **Interchange Agreements**: OmniTRAX has established interchange agreements with multiple Class I railroads, ensuring seamless connections from short-line railroads to the broader national rail network. This connectivity is critical for efficient freight movement and broad market access.

- **Customer-Focused Solutions**: The company works closely with customers to develop rail solutions that meet specific transportation needs, from offering customized transport schedules to providing on-site rail operations.

Panhandle Northern GP7u #2069 is seen here at Borger, Texas on July 19, 2003. The PN took over this 31-mile Santa Fe branch in 1993. Doug Kroll photo.

Conclusion

OmniTRAX, Inc. stands as a testament to the potential of short-line railroad operations complemented by diversified logistics and industrial strategies.

From its inception in the mid-1980s with the acquisition of the Great Western Railway, OmniTRAX has grown into a formidable player in the North American transportation industry.

Its commitment to customer service, strategic growth, and innovation positions it as a crucial link in the supply chains of many industries.

As it advances, OmniTRAX is set to continue playing a vital role in North America's transportation and logistics landscape, driving efficiency and connectivity for businesses across the continent.