Sand Springs Holdings, LLC, a managed affiliate of OmniTRAX, Inc., is acquiring Sand Springs Railway Company, which runs freight service on 32 miles of track between Sand Springs and Tulsa, Okla. It will commence operations no later than July 31. Terms of the acquisition were not disclosed.
“We are excited to be in Oklahoma and involved with a market that shows such great potential for growth,” said OmniTRAX CEO Kevin Shuba on the acquisition that will be the company's first venture in Oklahoma. “The Sand Springs Railway has a great customer base and we are committed to providing the resources to quickly act on new opportunities there.”
The Sand Springs Railway handles traffic in steel, pulpboard, scrap iron, scrap paper, petroleum products, plastics and lumber and offers direct connections with Union Pacific, BNSF and South Kansas Oklahoma Railroad. Yaffe Metals, Baker Petrolite, Webco Industries and Ranger Steel are some of the railway’s key customers.
OmniTRAX Logistics Services, the company’s transloading unit, will lease 100,000 square feet of covered warehouse space as part of the deal. The warehouse offers heavy lift equipment to serve steel and building products shippers in the greater Tulsa area and wider Oklahoma markets.