GNW LOSES LUCRATIVE OJITAS MINE ACCOUNT!

Business is picked up by “tourist” line Colorado & Southern Scenic RR

Ojitas Mining Company, owner of the Ojitas Railroad, has signed a non-binding agreement with the Colorado and Southern Scenic Railroad for service to haul loads from Rosita to Valley Gate.

For years we have been trying to break out of being solely a tourist operation. We had some success with our partner operation Western Rail Services for locomotive shopping and repair. But this will give our little railroad a new reach!

C. Moore Butts, VP Business Development

The Colorado & Southern Scenic RR started operations a few years ago when the Great Northwestern vacated Valley Gate Yard after Armstrong Yard was built in Pinion. The C&S leased and recently completed purchase of the yard, which is their home base, and where they store their passenger equipment and steam locomotives. Additionally, Western Rail Services has their headquarters and operations set up in the roundhouse, which provides a solid base of business with frequent overhauls and service, not only from the GNW, but several of the adjoining western railroads.

Freight hauling will take different equipment than what we use for our tourist operations. We are pleased to report we have acquired and fully refurbished an Alco C628 dedicated to this new operation. This makes our little railroad a 100% Alco powered operation, both by steam and diesel!

Willit Run, VP Operations
C&S’s new used Alco C628

Ojitas RR Operations Manager Barry Deep commented:

It has been MONTHS since we have seen service! Numerous called to the GNW have yielded NOTHING but empty promises and no service. We have phosphate to deliver to our customers! We HAD to do something!
The Ojitas Railroad is dedicated to delivery of phosphate from the mine to Rosita. From there, it depends on a connecting common carrier for delivery to customers.

The Ojitas Railroad is also a growing operation, but highly dependent on the efficient delivery of their materials. They are also looking to expand, but being cash strapped, currently leasing a couple locomotives from the Powder River and Chugwater RR.

With this decision, we can confidently move forward with our own growth plans, including for our railroad.

Barry Deep, Ojitas Operations Manager

The Great Northwestern is fighting the decision.

We will take this to the governor! We will take this to our Congressmen! We will take this to the STB! This is an OUTRAGE!

Benjamin Banks, CFO

By statute, the GNW must pick up Ojitas Mine shipments from the C&S Valley Gate Yard. The GNW has retained a local law firm to represent their case.

This is simply egregious! Not only is it highly irregular that a host railroad must give their business to a tenant railroad, but the STB is forcing them to do ADDITIONAL SWITCHING at Valley Gate. This is going to cost the GNW both time and money as the need to allocate more crews for this service while stealing their revenue. We believe we have a strong case and will take it to the highest courts in the land. We are heading to Washington DC next week to find some sanity and reason in support of this case.

Sue Yerpanzov, lead counsel at Dewey, Cheatham & Howe, LLP

The residents of Rosita seem unfazed by the decision. 

"We are a quiet town and supporters of the mine. Many of our kids have parents that work at the mine. We support whatever helps their operations grow"

Rosita is best typified by its park by the tracks, harmonizing family, culture, growth and progress.

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