The creditors of Central Illinois Railroad‘s parent company are selling theirs.
Central Illinois Railroad just got $150,000 in taxpayer dollars in May — their price to allow the Kellar Branch rail-to-trail conversion go forward.
UPDATE: The front office of CIRY states that they’re still going to be providing shortline service in Peoria to O’Brien Steel, but were unable to answer any further legal questions. According to published reports, the company only has eight locomotives, and they all appear to be up for sale based on the above notice. So, how exactly they’ll be able to continue providing service is unclear.
So what if this means the City of Peoria has to negotiate a new contract with Pioneer Industrial Railway? As I understand the present arrangement, PIRY is subcontractor to Central Illinois Railroad.
Does this mean that O’Brien Steel has to look for another railroad to move its material?
This looks like a bank foreclosure. The Chicago line is part of the old Illinois Northern. BTW, whatever happened to the fellow that was part of this that was charged with trying to murder somebody?
It appears Pioneer Industrial Railway doesn’t need to negotiate a new contract with the City of Peoria, nor is it a subcontractor to CIRY.
David and SD: I asked Randy Ray, legal counsel for the City of Peoria, what happens if CIRY can no longer provide service on the southern end of the Kellar Branch (where O’Brien Steel is located). He said, “The agreement allows the 2 railroads to coordinate service, so we would anticipate that the railroads will continue to cooperate and provide service.” So, basically, this means that Pioneer would likely take over service to O’Brien Steel, if O’Brien wishes to continue getting rail shipments. Pioneer and CIRY are the only two carriers authorized to use the remaining portions of the Kellar Branch.
Doc: That would be Donny Lee Gibson. He plead guilty to a lesser charge in 2006, and was sentenced to seven years in prison. However, the newspaper noted, “With day-for-day credit and credit for time already served, Gibson could serve about two years in prison.” A later article stated that his parole was set for Nov. 12, 2008. So my guess is that he’s out now.
According to published reports, the company only has eight locomotives, and they all appear to be up for sale based on the above notice. So, how exactly they’ll be able to continue providing service is unclear.
Uh oh…can you say, “trackmobile?” Unless they lease a locomotive or actually own more than eight, that’d be the only way.
Yep, Gibson is out now. Thanks.
The Shortline of Chicago website says that the Central Illinois has been replaced up there. Illinois Northern was it’s longest line. The Shortlines websight has google earth images on it’s CIRY page.
I already own two locomotives. Why would I need a third?
I own one and its darn hard to park it in the backyard nowadays.