Regional News

TEXAS STATE RAILROAD

As a result of bills passed in the 80th Legislature (Senate Bill 1659 and House Bill 3113) and signed by the governor, the Texas State Railroad will be transferred to a Rail Authority created by those bills. The Rail Authority has a contract with American Heritage Railways (AHR), a private company, to operate the Texas State Railways and AHR will receive ownership of the railroad over the next eight years. The Rail Authority is controlled by the cities of Palestine and Rusk, located on each end of the railroad. So, the Texas State Railroad will be operated and controlled by a combination public entity (Rail Authority) and private entity (American Heritage Railways) for the next eight years. At that time, if all goes well, American Heritage Railways will achieve total ownership of the Texas State Railroad and the Rail Authority will be dissolved. This transfer from the Texas Parks and Wildlife Department to the Rail Authority will occur on September 1, 2007. The Legislature also passed in its appropriations bill (House Bill 1) for the Rail Authority to have $12,000,000 for the maintenance of the tracks.

American Heritage Railways has not finalized their contract with the Texas State Railroad Rail Authority. According to Paul Schrank, vice president of AHR, "It's going through the motions." This only leads to speculation on the intentions of AHR. According to legislation, on September 1, 2007 the operation and responsibility of the Texas State Railroad will be transferred to the Texas State Railroad Rail Authority.

Photos by Bruce Partain.