Passenger Trains > Iowa Pacific sells Permian Basin lines to Watco

Not strictly passenger-related, but it involves a passenger
railroad holding company, Iowa Pacific:
======================================

Watco to acquire two Iowa Pacific shortlines
TRAINS.com
May 18, 2015

PITTSBURG, Kan. – Watco Companies will acquire the assets of two
shortline railroads from Iowa Pacific Holdings, the Texas New Mexico
Railroad and West Texas & Lubbock Railroad.

The new railroads, owned by Watco Transportation Services, will be the
Texas & New Mexico Railway, which will take over operations of the rail
line currently operated by Texas New Mexico, and the Lubbock & Western
Railway, which will take over the rail line currently operated by West
Texas & Lubbock.

The new Texas & New Mexico Railway railroad extends from a Union Pacific
connection at Monahans, Texas, to Lovington, N.M. The railroad serves
the oil fields of west Texas and southeast New Mexico. The primary
commodities shipped on the line are oilfield chemicals and minerals,
construction aggregates, industrial waste, and scrap.

The Lubbock & Western Railway is divided into two segments; the most
northern segment runs from just north of Dimmitt, Texas, to Plainview,
Texas, and the second segment runs west from Lubbock, Texas, to
Whiteface, Texas, and southwest from Lubbock to Seagraves. The Lubbock &
Western ships commodities such as fertilizer, construction aggregates,
grain, cotton, chemicals, peanuts, and plastics.

“We see this addition of the two Permian Basin lines as a tremendous
growth opportunity for Watco,” says Stefan Loeb, executive vice
president and chief marketing officer. “These two new railroads are a
perfect addition to allow us to better serve our Texas customers.

Full story:

Watco to acquire two Iowa Pacific shortlines

Odd for IP to sell over two hundred miles of trackage. Wonder if profits have taken a hit on these two and IP is looking to cut its losses - perhaps to purchase new trackage somewhere else that might be more profitable? If not that, I would be slightly concerned for IP. Who knows.