Revolution Rail Purchases Former Saratoga North Creek Rail Line

WARREN COUNTY — Revolution Rail Co. (RevRail) announced its purchase of the Saratoga and North Creek Railway, which stretches from the hamlet of North Creek, Warren County, north to the Tahawus mining works in the Town of Newcomb, Essex County. 

The North Creek railbiking company’s bankruptcy purchase of 30 miles of a rail line right-of-way allows RevRail to continue Railbiking tours out of its North River launch, with the hope of expanding its operations from the Tahawus mine toward the scenic Opalescent River—while providing rail services upon request to area freight shippers, in adherence to its Federal Common Carrier obligation. 

The purchase coincides with an announcement by RevRail and the Open Space Institute (OSI) that, in the event commercial freight demand does not materialize after several years, the two entities will work with local officials, the Surface Transportation Board, and the Department of Environmental Conservation to determine the future of the line, which has the potential to be a transformative four-season, multi-use recreational trail. 

To that end, in return for an option to acquire the line for up to 20 years, OSI, through its subsidiary Tahawus Rail, LLC, provided RevRail a $2.7 million loan to acquire the line. While the arrangement permits commercial shipping on the line, it prohibits parking storage tankers on the rail property, a long-term goal of OSI and the New York environmental community. Should OSI exercise its option to acquire the line, it would own the full 30-mile right-of-way, subject to a leaseback of portions of the line to RevRail. 

The purchase of the bankrupt rail line occurred after the original high bidder for the property was disqualified. RevRail, which was the next high bidder at the live auction that occurred in March, negotiated the $2.7 million sale price with the bankruptcy plan administrator. The sale of the former rail line has been approved by the Surface Transportation Board. As part of the agreement, RevRail will maintain common carrier status.