Apache Railway Company summary
The Apache Railway Company (APA) is a short line railroad that operates in northeastern Arizona. It’s owned by Aztec Land & Cattle Company and Midwest Poultry Producers, L.P. Headquartered out of Snowflake, Arizona. The century-old railroad owns 36 mainline miles of standard-gauge track to the north in Holbrook.
History
The Apache Railway Company was incorporated in 1917 to tap into the White Mountain’s timber reserves for the U.S. Forest Service and White Mountain Apache Tribe. Construction from Holbrook began later that year, reaching Snowflake in 1918 and McNary in 1920 with a total distance of 72 miles. Throughout its history, the railroad endured multiple owners, a receivership during the Great Depression, the addition of a large paper mill west of Snowflake in 1960, and the loss of the lumber mill in McNary along with 37 miles of track. On September 30, 2012, the paper mill was permanently closed by the railroad’s then-owner, Catalyst Paper Corporation. With its top customer gone, the Apache Railway’s future became uncertain.
Hackman Capital Partners, an owner of industrial real estate, took ownership with the intent to dismantle the line at scrap value. Snowflake officials were able to persuade the group in holding off dismantlement while they tried to put together a deal to save the APA. After several dispositive hearings before the bankruptcy court, the Aztec Land & Cattle Company agreed to pay Hackman the amount due. In 2015, the Apache Railway’s stock was passed to a holding company that is owned and controlled by both Aztec and Midwest Poultry.
Operations
Although its original timber business is now history, the Apache Railway Company has evolved by tapping into car repairs, wet and dry cleaning, and railcar storage. In April 2018, the railroad opened its doors to repairing tank cars followed by an immediate onslaught of business. Approximately 10% of total revenue comes from actual freight haulage while the remaining 90% consists of railcar repair, cleaning, and storage.
Seven diesel locomotives from Alco and the Montreal Locomotive Works serve on the Apache Railway’s roster. From the Century 420s to the C-424s of the 1960s, they are venerable machines traveling along the line’s 6,000-feet of elevation.
The Apache Railway Company interchanges with BNSF Railway at Holbrook on the Class I railroad’s Southern Transcon main line.
Read more about the Apache Railway Company in Trains‘ June 2020 issue.
