Caterpillar, City of Peoria, Kellar Branch

Caterpillar to acquire Progress Rail

9 Comments

PEORIA, Ill. – Caterpillar Inc. (NYSE: CAT) has reached an agreement to acquire Progress Rail Services, Inc. (Progress Rail) for $1.0 billion in cash, stock and assumption of debt. Progress Rail is majority owned by One Equity Partners, a private equity affiliate of JP Morgan Chase & Company, Inc.

Based in Albertville, Alabama, Progress Rail is a leading provider of remanufactured locomotive and railcar products and services to the North American railroad industry. With 2005 sales of $1.2 billion, the company has one of the most extensive rail service and supply networks in North America. It operates more than 90 facilities in 29 states in the United States, Canada and Mexico, with about 3,700 employees.

Wouldn’t it be great if a new facility were to open in Peoria, say maybe in Growth Cell 2?  As long as Peoria keeps trying to kill the Kellar Branch and rely solely on Union Pacific service from the west, it ain’t gonna happen.

9 thoughts on “Caterpillar to acquire Progress Rail”

  2. I’m up for getting a group started to back that offer from Pioneer Rail that you detailed yesterday, CJ. Seriously, email me if you wanna join. cara@grope.com

  3. Cat NOT moving these rail-relating jobs to Peoria has NOTHING to do with rail access and EVERYTHING to do with the fact that the business is in Alabama, a RIGHT TO WORK state where Cat doesn’t have to deal with a union and pay union wages and benefits.

    Trying to tie Cat into your devotion to preserving cheap rail access for a small handful of companies is a massive stretch, at best.

  4. Perhaps so with Cat. But just as a small correction — I’m not interested in preserving cheap rail access for a small handful of companies. Although it does concern me that Carver Lumber has been treated so poorly, I’m not only interested in preserving the line for their sake. I’m interested in preserving competitive rail access because I believe it can be used to attract light industry to Peoria and that means more jobs. We should be utilizing this asset to bring business and jobs to Peoria, not tearing it out for recreational purposes.

  5. That Cat is buying a rail corporation is indicative that they are bullish on the rail business. Not so long ago there was talk of Cat shedding its rail engine segment. High gas prices are good for rail.

  7. According to ProgressRail’s website, they have a RIP track at Peoria. I’m not sure where it is or exactly what it does but it is listed here:

    http://www.progressrail.com/portal/page?_pageid=35,470871&_dad=portal&_schema=PORTAL

    Watco Companies is operating the old Peoria & Pekin Union car repair shop in East Peoria for the Tazewell & Peoria RR but perhaps Progress Rail has some involvement. This facility is a “RIP Track” or “Repair-In-Progress.”

    …and Dude,

    Youre comments about C. J.’s “devotion to preserving cheap rail access for a small handful of companies” shows that you have not carefully read his numerous, informative posts on the subject. There is a lot more to the Kellar Branch issue than Carver Lumber (which, BTW, is enough to stop the trail extension, which we do not need).

  8. Considering that the rail company that Caterpillar is paying a BILLION for sold a year or so ago for about 400 Million, they must think something is up with the rail industry.

    Didn’t the old TP&W rip track used to be operated by Progress Rail?

  9. Venari wrote: “Didn’t the old TP&W rip track used to be operated by Progress Rail?”

    Hmmm, I assumed that TP&W performed its own car and locomotive maintenance but you may be correct about that. Perhaps Progress Rail is still there.

Comments are closed.