Arizona Eastern Railway Files To Build New Rail Line

Washington, D.C. – Arizona Eastern Railway, an Iowa Pacific Holdings company, filed a petition with the Surface Transportation Board today seeking permission to build a new railroad line in Arizona. The 10-mile long line will serve a new Phelps Dodge Mining Company copper mine and an industrial park in Safford, Ariz.

The new rail line will carry copper and copper-production materials to and from Phelps Dodge Mining Company mines and facilities around the country. By building a railroad directly to the mine rather than relying on trucks to transfer product from the mine to the railroad, approximately 22,000 truck trips per year will be avoided. The new line will also facilitate development of an industrial park near the Safford airport.

“The new rail line is an excellent addition to the Gila Valley and the City of Safford,” said Safford Mayor Ron Green. “Building the rail line is a win for everyone -- it will reduce the number of trucks on area roads, facilitate the development of the new Phelps Dodge mine and be a valuable marketing tool for our airport industrial park.”

The new line would diverge from the existing Arizona Eastern Railway line east of Safford, Ariz., cross the Gila River on a new 500-foot bridge, pass the Safford airport industrial park site and end at a new Phelps Dodge Mining Company copper mine complex. Construction on the $22 million rail line is projected to commence in mid-2007 with completion a year later.

“We are very excited to work with Phelps Dodge and the City of Safford to build this new line,” said Arizona Eastern Railway President Ed Ellis. “By building this branch line, Phelps Dodge will gain the cost efficiencies of direct rail service and the people of Safford and the Gila Valley will have fewer trucks on the roads.”

Phelps Dodge Mining Company is already a major rail shipper, sending over 7,000 freight cars per year over the Arizona Eastern Railway. The new branch line is expected to generate over 5,000 additional carloads. Rail shipments are generally less costly than trucking due to the inherent efficiencies of rail technology.

Arizona Eastern Railway is owned by Iowa Pacific Holdings, LLC. Iowa Pacific is a shortline railroad holding company based in Chicago. Iowa Pacific owns four shortline railroads in Arizona, Colorado, New Mexico and Texas.