Bn Cuts Deal To Buy Washington Central

Burlington Northern Santa Fe Corp. said it agreed to acquire the Washington Central Railroad Co. for $40 million in cash and stock.

The acquisition will provide Fort Worth-based Burlington Northern with a third route between central Washington and the Pacific Coast. It’s part of the railroad’s plan to increase shipping capacity from the U.S. Midwest to the Pacific Northwest.

Washington Central operates two rail segments: a 234-mile short line between Kennewick, a Burlington Northern interchange point, and Cle Elum; and an 85-mile segment from Connell, another Burlington Northern interchange point, and Moses Lake.

The agreement also gives Burlington Northern immediate rights to start repairing the Stampede Pass and Washington Central’s tracks.

The transaction, to be accounted for as a tax-free exchange, is scheduled to be completed no earlier than Oct. 31.