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Friday, April 08, 2011 11:37:50 AM
BOCA RATON, Fla.--(BUSINESS WIRE)--Banyan Rail Services Inc. (OTCBB: BARA), announced today that its wholly-owned subsidiary, The Wood Energy Group, Inc. (“Wood Energy”), has entered into an amended service agreement with Kansas City Southern Railway Company (“KCS”) (NYSE: KSU) for the gathering, pick-up and disposal of scrap rail ties. Wood Energy, based in St. Louis, Missouri, is one of the nation’s largest railroad tie reclamation and disposal companies.
Under this amended service agreement, Wood Energy has been selected to pick up and remove more than 500,000 railroad ties per year for the next two years. The original service agreement designated Wood Energy to dispose of the ties once delivered by KCS to Wood Energy. This agreement covers the gathering, pick-up and disposal of rail ties along KCS’ 3,500-mile, 10-state rail system serving the central and south central U.S.
Greg Smith, President of The Wood Energy Group, said, “This new KCS tie contract is an excellent addition to our core business. By virtue of this amended agreement, Wood Energy will increase its total tie reclamation volume to well over 2 million ties annually. It has been a pleasure to work with the folks at the KCS and we are excited about this opportunity to expand our services with them.”
Banyan Rail Services Inc. is a railroad support services company headquartered in Boca Raton, Florida. The Company owns The Wood Energy Group, Inc., one of the nation’s largest railroad tie reclamation and disposal companies.
http://www.businesswire.com/news/home/20110408005647/en/Banyan-Rail-Services-Subsidiary-Enters-Rail-Tie
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