THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Tuesday, February 27, 1996 TAG: 9602270287
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY CHRISTOPHER DINSMORE, STAFF WRITER
LENGTH: Short : 39 lines
Norfolk Southern Corp.'s rail lines end just inside Florida, stopping short of most of the booming state's biggest markets. Now the Norfolk-based railroad may have an opportunity to extend its southern reach.
The Florida East Coast Railway is on the block. The 442-mile-long road offers access all the way down the state's east coast to Miami.
The railway's parent company, Jacksonville, Fla.-based Florida East Coast Industries Inc., announced the decision Monday.
The two railroads already cooperate in the shipment of automobiles and intermodal containers to and from the Sunshine State.
A Norfolk Southern spokesman declined to speculate on whether the company would be interested in buying Florida East Coast Railway.
Norfolk Southern's line extends to just south of Jacksonville.
Florida East Coast's line goes from Jacksonville down through West Palm Beach and Fort Lauderdale to Miami. The railway hadsales of more than $150 million in 1995. It also serves the port of Miami and the rapidly growing Port Everglades, near Fort Lauderdale, which are among the biggest ports on the East Coast.
In a news release, Florida East Coast Industries said it won't pursue a sale of its railroad until it sells its real estate development arm.
St. Joe Paper Co., which owns 54 percent of Florida East Coast Industries, has offered to buy the real estate unit, Gran Central Corp., in a tax-free swap. In other words, it would give up its $370 million stake in Florida East Coast Industries for Gran Central. Both companies are evaluating the offer. by CNB