OmniTRAX

American railroad holding company

OmniTRAX, Inc. is a transportation and transportation infrastructure holding company based in Denver, Colorado, in the United States. It primarily owns or operates railroads, with a network of 25 regional and shortline railroads in 12 U. S. states and three Canadian provinces. energy development and real estate company founded by Denver businessman Pat Broe in 1972. in order to augment the value of Broe's industrial real estate developments in northeastern Colorado.

OmniTRAX leased the 278 mile (447 km) Kansas Southwestern Railway from the Union Pacific Railroad in April 1991. In June 1992, OmniTRAX purchased all the outstanding stock of the Chicago West Pullman Transportation Co., which owned the 1.78 mile (3 km) Manufacturers' Junction Railway at Cicero, Illinois; the 13 mile (21 km) Newburgh and South Shore Railroad at Cleveland, Ohio; the 72 mile (116 km) Chicago Rail Link at Chicago, Illinois; the 25 mile (40 km) Chicago, West Pullman and Southern Railroad in Chicago; the 17.3 mile (28 km) Georgia Woodlands Railroad in Warren and Wilkes counties, Georgia; OmniTRAX purchased the abandoned Western Electric Hawthorne Works in Cicero, which was adjacent to the Manufacturers' Junction Railway, and began developing it as a multimodal transfer center. OmniTRAX formed the Central Kansas Railway to run on the lines. The Kansas Southwestern Railway merged into the Central Kansas Railway in May 2000, and then OmniTRAX sold the Central Kansas Railway to Watco in April 2001. OmniTRAX purchased 31 mile (50 km) of track between Borger and Panhandle, Texas, from the Atchison, Topeka & Santa Fe in November 1993. It formed the Panhandle Northern Railroad to operate on this track. Eighteen months later, in May 1995, OmniTRAX leased the 25.5 mile (41 km) Northern Ohio & Western Railway from the Sandusky County/Seneca County/Tiffin Port Authority.

OmniTRAX moved into Canada in November 1996 with its purchase of the Hudson Bay Railway, which ran from The Pas, Manitoba, to the Port of Churchill in Churchill, Manitoba. OmniTRAX then purchased the port itself for C$1 in November 1997. As part of the deal, the Canadian government agreed to put C$34 million worth of upgrades, dredging, and repairs into the port, while OmniTRAX pledged to add C$45 million in upgrading the port facilities and Hudson Bay Railway.

OmniTRAX expanded its presence in the American Southeast in 2004 by purchasing the 245 mile (394 km) Georgia and Florida Railnet (renamed the Georgia and Florida Railway) from North American RailNet. It also leased the 22 mile (35 km) terminal switching

OmniTRAX made its first venture into Washington state when it purchased a 76.5 mile (123 km) BNSF Railway route in January 2005. This route, shaped like an inverted capital "U", ran from Kettle Falls, Washington, north to the U. S. Canadian border at Laurier, Washington, crossed the border to reach Cascade City, British Columbia, traveled west to Almond Gardens, then south to cross the border to follow Washington State Route 21 to Republic, Washington. Another 83 mile (134 km) of line (from Kettle Falls southeast to Chewelah, Washington, and from Kettle Falls northwest to Columbia Gardens, British Columbia) was leased from BNSF. The Kettle Falls International Railway was created to run on these lines. OmniTRAX completed its purchase of all of North American Railnet's assets in April 2005 when it purchased the 509 mile (819 km) Nebraska Kansas Colorado Railway and the 113 mile (182 km) Illinois Railway.

OmniTRAX moved into California for the first time in 2011 when it purchased the 25 mile (40 km) Stockton Terminal & Eastern Railroad, a short line linking several industrial customers to the Port of Stockton, the Union Pacific, and the BNSF. The company expanded its operations in Oklahoma in June 2014 when it purchased the 32 mile (51 km) Sand Springs Railway between Tulsa, Oklahoma and Sand Springs, Oklahoma. In September 2016, it acquired the former Gerdau steel mill site in Sand Springs. The company said it would work with other Broe Co. subsidiaries to build residential, retail, industrial, logistics, and transportation buildings and facilities there. June 2014 also saw OmniTRAX purchase the Brownsville and Rio Grande International Railroad in Texas, OmniTRAX said it would build an industrial park on the land. By the end of 2014, the firm also controlled the Peru Industrial Railroad, a 3 mile (5 km) switching railroad in Peru, Illinois. By March 2016, OmniTRAX owned 20 shortline railroads operating in 12 U. S. states and three Canadian provinces. In July of that year, the company partnered with the Topflight Grain Cooperative to operate the new Decatur Central Railroad. OmniTRAX purchased 16 mile (26 km) of Decatur Junction Railway track that connected Topflight's facility at the Midwest Inland Port near Cisco, Illinois, with a variety of grain and cereal processing plants in and around Macon County, Illinois. The top companies shared the costs of equipment and operations of the railroad. OmniTRAX proposed buying Iowa Pacific Holdings' Sanford Lake Branch track (also known as the Saratoga North Creek Railway), which ran 29 mile (47 km) from North Creek, New York, to Tahawus, New York, in August 2019. The firm also proposed buying track owned by Warren County which ran from North Creek to Corinth, New York. This would allow OmniTRAX to make additional connections with Class I railroads. Local residents, concerned that OmniTRAX would permit its track to be used for the storage of oil tank cars, opposed the sale. Warren County officials did not want to sell their track for fear of losing control over the uses to which it could be put. After a year of public debate, OmniTRAX declined to pursue both deals. In July 2019, OmniTRAX purchased the 100 mile (161 km) Winchester & Western Railroad's Virginia Division from Covia Holdings for $105 million. The division included 53 mile (85 km) of track in western Virginia and 47 mile (76 km) of track in New Jersey. The purchase was subject to review and approval by the Surface Transportation Board, a federal agency. It was completed in September 2019. OmniTRAX picked up its 25th rail operation in August 2022, when it was selected to run the Port of Catoosa Industrial Railroad (PCIR) by Tulsa Ports.

In 1997 the Canadian National Railway sold the Port of Churchill and accompanying rail line to OmniTRAX as part of the privatization of CN. OmniTRAX operated the railway for the ensuing two decades, shipping mostly wheat to the Port of Churchill on behalf of the Canadian Wheat Board. In June 2017, OmniTRAX suspended service on the Churchill rail line after severe flooding washed out the line in multiple locations. OmniTRAX refused to repair the railway, claiming it was not economically feasible. The company claimed that due to the closure of the Canadian Wheat Board in 2008, it was no longer economical to operate the line or the Port of Churchill. As part of a 2008 contract between the Federal Government and OmniTRAX, the Government of Canada had given OmniTRAX C$20 million for upgrades to both the Railway and Port with the agreement that the company would match the funds. The contract stipulated that OmniTRAX could not reduce or abandon service on the line, or the funding would be required to be returned. On October 13, 2017, Minister of Natural Resources Jim Carr issued a notice of default to OmniTRAX, advising the company that they had 30 days to make repairs to the rail line or face default on the agreement. On November 14, the Federal Government issued a notice of default against OmniTRAX claiming C$18 million, plus interest. In response, the company filed a complaint through NAFTA Chapter 11 claiming the Canadian Federal Government had sabotaged efforts to repair and transfer ownership of the railway. In June 2018 OmnitTRAX was ordered by federal regulators to repair the tracks. On August 31, 2018 the port and rail line were sold to Arctic Gateway Group, a consortium of investors including First Nations, local governments, financial holding companies, and grain producers.

In 2003, OmniTRAX was one of three companies bidding for BC Rail, a 1441 mile (2319 km) province owned railroad in British Columbia then being privatized by the government. OmniTRAX officials began communicating with provincial officials in 2001, urging the privatization of the railroad. OmniTRAX officials continued to urge them to do so in 2002. BC Rail officials recommended the privatization of the line in the fall of 2002. OmniTRAX hired Pilothouse Communications, a Victoria based lobbyist firm, to represent its interests. Pilothouse lobbyist Erik Bornmann bribed two ministerial aides from 2001 to 2003 with cash and gifts in exchange for confidential government documents that were then passed to OmniTRAX. Brian Kieran, Pilothouse's owner, claimed he advised OmniTRAX against offering one a gift (a trip to Denver to see a football game), but OmniTRAX officials disregarded his advice. Law enforcement officials never charged OmniTRAX with any wrongdoing in regards to the bribery effort or the receipt of stolen documents. OmniTRAX ultimately bid C$710 million for BC Rail, OmniTRAX dropped out of the auction (police later alleged, based on wiretap information) after its officials came to believe that the provincial government had predetermined Canadian National Railway to be the successful bidder. David Basi, an aide to BC Finance Minister Gary Collins, then advised Collins to arrange an unnamed "consolation prize" for OmniTRAX. In December 2003, Pat Broe and Dwight Johnson (a vice president of The Broe Group) had dinner at a Vancouver restaurant with Collins. Their conversation allegedly regarded the sale of a BC Rail spur line to OmniTRAX.

OmniTRAX is subsidiary of The Broe Group, a company with an array of financial interests in energy development, healthcare technology, real estate, transportation, and other industries. As of August 2019, OmniTRAX operated 21 rail lines, making it one of the largest privately owned rail transportation companies in the United States. OmniTRAX's corporate strategy is to identify companies or groups of companies transporting cargo but not using railroads to do so. It then looks for unused or under used rail opportunities nearby to serve these customers. In 1997, TSS won a contract to provide switching services at the newly opened Deltaport, the Port of Vancouver's new container shipping facility. OmniTRAX ceased to provide services at Deltaport in July 2008. OmniTRAX Logistics Services (OLS) is a subsidiary of OmniTRAX that provides materials handling. In 2016, OLS purchased the assets of Terracor Group, a firm that provided ultra fine grain sand for hydraulic fracturing purposes. These included three "frac sand" facilities (in Montana and Texas) and the mineral rights to a frac sand mine in Wisconsin. OmniTRAX intended to supply frac sand to Broe Group energy development companies as well as to other customers in Bakken Formation of Manitoba, Montana, North Dakota,
and Saskatchewan; the Eagle Ford Shale of Texas; and the Permian Basin of New Mexico and Texas. OmniTRAX's attempt to open the Wisconsin mine led to a lawsuit in February 2017 by local residents who feared the noise, light, and traffic associated with the mine. Although OmniTRAX won a state permit to fill in of wetland as part of a proposed 10 mile (16 km) railroad associated with the mine, a state court permitted the lawsuit to proceed. In May 2019, OmniTRAX said it had abandoned the mine project. OmniTRAX Sand Holdings is a subsidiary of OmniTRAX which provides transportation options for frac sand and ceramics. It is a joint venture of OmniTRAX and Arrows Up, a bulk materials storage and transportation company. The joint venture is marketing the Arrows Up Jumbo Bin, a container which can be used by rail or trucks that is capable of holding up to of frac sand or ceramic material. The bin can be used for transportation or storage, and contains its own dust suppression features.