Sand Springs Railway Company, a managed affiliate of OmniTRAX, Inc., is acquiring the Gerdau mill site in Sand Springs, Okla. Financial terms of the sale were not disclosed.
The Sand Springs Railway provides freight service between Sand Springs and Tulsa over a 32-mile route and has direct connections with Union Pacific, BNSF and South Kansas Oklahoma Railroad.
“The mill site is a great location to attract tenants that require solid infrastructure, access to major transportation lanes and support from our top-rated development team,” said OmniTRAX CEO Kevin Shuba. “It will also give us the opportunity to expand the local operation of OmniTRAX Logistics Services, our transloading, terminal and logistics solutions affiliate.”
Sand Springs Holdings, LLC, an OmniTRAX affiliate, purchased Sand Springs Railway from Gerdau in 2014 and has been leasing portions of the 146-acre site. Part of the steelmaking operations on the site will be demolished and the property will be developed for mixed use, including industrial, retail, office and transportation/logistics.
“We appreciate the solid working relationship we’ve had with Gerdau over the past two years and their professionalism during the sale and transition period,” added Shuba.