Sand Springs Holdings, a managed affiliate of North American rail service company OmniTRAX, is acquiring Sand Springs Railway Company for an undisclosed amount.
Sand Springs Railway runs freight service between Sand Springs and Tulsa, Oklahoma on 32 miles of track, and will commence operations no later than 31 July 2014. It has direct connections with Union Pacific, BNSF and South Kansas Oklahoma Railroad.
The latest move gives OmniTRAX first venture in Oklahoma.
OmniTRAX CEO Kevin Shuba said that the company is excited to be in Oklahoma and involved with a market that shows such great potential for growth.
"The Sand Springs Railway has a great customer base and we are committed to providing the resources to quickly act on new opportunities there," Shuba added.
As part of the deal, OmniTRAX Logistics Services, the company's transloading division, is leasing 100,000ft² of covered warehouse space with heavy lift equipment to serve steel and building products shippers across the greater Tulsa area and wider Oklahoma markets.