American Heritage is frontrunner
Texas State Railroad Operating Agency reviews 4 plans to privatize train
BY MARIE WHITEHEAD EDITOR

American Heritage Railways emerged as the frontrunner among four bidders for the operation of the Texas State Railroad (TSR) at the end of an all day meeting Thursday in Palestine.

Members of the operating agency for the TSR heard presentations from three of the interested companies and participated in a teleconference call from a fourth.

Steve Presley, operating agency president, stated, "We listened to proposals from four qualified companies to run the Texas State Railroad. After much discussion and deliberation, American Heritage has been selected as the operator with whom we will first negotiate."

The other three companies, all of whom submitted extensive proposals, are Sierra Railroad Company, Patriot Rail, LLC and Rio Grande Pacific Corporation.

Thursday's action followed a more than one year period of attempts to find a solution to the current state operated tourist train, which has been under the umbrella of the Texas Parks & Wildlife (TPWD) since its inception in 1973. The train's inaugural run was held in July 1976 as a part of the state's celebration of the Bicentennial.

Financial difficulties have plagued the historic, steam operated locomotive in recent years. A tax on sporting goods, dedicated to TPWD in 1991 was changed in 1993 by the state legislature. Funds were capped at $32 million to TPWD with the remainder diverted to other state funds.

A letter by TPWD Executive Director Bob Cook in December 2005, launched the message, "find another operator for the Texas State Railroad, or it will be parked and become a static display."

In January 2006, a large delegation from the two counties met with commission board members at TPWD headquarters in Austin. Following this group's presentation, it was suggested that a bi-county committee should be organized to plan an alternative operation.

In subsequent action, the cities of Rusk and Palestine adopted an interlocal agreement to sanction a Task Force Committee for the Preservation of the TSR.

This group's efforts provided a legal vehicle to represent the railroad in future transactions.

Volunteers have focused on working with TPWD for continued support. The possibility of seeing this historic treasure parked became a driving force to overcome all obstacles in pursuit of some plan to keep the train rolling.

Thursday, the operating agency authorized Mr. Presley "to negotiate a contract for the private operation of the Texas State Railroad subject to authorization by the State of Texas through the creation of the Texas State Railroad Authority."

Members of the operating agency have pursued a twofold objective diligently: keep the train operating either as a fully funded state park or partner with a private operator.

The next step

Future steps call for negotiations with the elected officials, state Sen. Robert Nichols, state Rep. Chuck Hopson and state Rep. Byron Cook.

The legislature is expected to allocate adequate funding for use of the new operator to bring the historic train, tracks and facilities to an improved state of condition.

The massive proposals from the four interested operators addressed information regarding each company's experience in the operation of tourist trains, length of service and success, financial strength and company philosophy toward marketing, staff, history, insurance, safety and goodwill.

Jeff Jackson of American Heritage, said, "You have an estimated 60,000 ridership now. We expect to double that within 12 to 15 months."

Representing American Heritage Railways was owner Al Harper with Jeff Jackson, Paul Schrank and Christi Nelson Cohen, homebased in Florida. Sierra Railroad Company, based in California, was represented by Chris Hart, Allen Cleveland, Ed McLaughlin and Dave Wilkinson. Patriot Rail's voices, based in Florida, were John Marino and Gary Marino; Rio Grande Pacific Corp. based in Fort Worth was representd by Chris Bertel, Richard Bertel, Corbin Bedard and Rick Campbell.

Members of the operating agency present were President Presley, Dale Brown, Dan Davis, Charles R. Hassell, Bob Goldsberry and Marie Whitehead. Others present were Bryan Malone and Carroll Boyd of the Palestine Economic Development Corporation, TSR Superintendent Robert Crossman, Ron Stutes, Palestine operating agency attorney and Randy Gustafson of Stone Consulting.