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Carbon sells railroad to Reading and Northern for $4.7 million

On Thursday, Carbon County’s railroad commission and board of commissioners approved the sale of its rail line to Reading Blue Mountain and Northern Railroad for $4.7 million.

During a special meeting of the commission, which took place directly before the commissioners’ meeting, the board, in a unanimous vote, approved recommending the sale of the approximately 19.5-mile Panther Valley rail line to the board of commissioners. The railroad commission consists of the board of commissioners, as well as Rick Forgay II of Lansford, the son of railroad commission charter member Richard E. Forgay.

The commissioners also approved the motion unanimously.

Through terms of an agreement negotiated decades ago as part of the purchase of the line, Lansford will receive 25% of the sale.

Previous offers

Andy Muller, owner of Reading and Northern, offered to purchase the line, which he currently manages for the county, in 2016.

At that time, he offered $1.3 million for both the rail line and the former Packerton Yards property.

In 2017, the county moved on, getting the rail line, which runs between Packerton Yards and Haucks Junction in Schuylkill County, appraised by Stone Consulting of Warren.

The appraisal, at a cost of $27,000, included the track and rights of way adjacent to the track, as well as Packerton Yards.

The county then hired a surveying company to survey portions of the railroad.

Former Commissioner William O’Gurek was not in favor of a sale, while Commissioner Wayne Nothstein had previously said he was in favor of selling it.

Muller said Thursday that he plans to sink millions into the railroad over the next few years.

“Some people love New York, I love Jim Thorpe,” he said.

Nothstein said, “It’s been a long time coming.”

The county will retain the parking lot and train station. “That was a huge concern of the public,” Nothstein said.

He thanked Muller for working with the county.

History of the PV rail line

Carbon County purchased the former Nesquehoning Valley Branch Line 1009 through the newly formed Carbon County Railroad Commission on Sept. 30, 1981, at a cost of $991,500, with the help of federal grants.

Richard E. Forgay of Lansford, a charter member of the commission and former secretary of the Lansford Borough Council, was instrumental in the purchase by securing the federal grant through Lansford. The grant was used by Carbon County.

At that time, Carbon County became the first county in Pennsylvania to own a railroad.

The commission then hired Carbon and Schuylkill Railroad in 1990 to manage the line’s operations. C&S Railroad is now overseen by Muller.

The purchase occurred because the line had been in jeopardy since 1976 after Conrail formed from the seven bankrupt railroads; and allowed businesses that utilize the line to remain operational, which is still true today.

The line, which operates through both Carbon and Schuylkill, is part of an active freight and passenger line utilized by Reading and Northern and serves a number of customers along the line.

The Reading and Northern 425 passes along the Panther Valley rail line in the Hauto Valley Estates portion of Nesquehoning during a fall excursion in 2017. BOB MILLER/TIMES NEWS
A diesel freight train owned by Reading and Northern Railroad passes along the Panther Valley rail line in front of Ametek in Nesquehoning. TIMES NEWS FILE PHOTO
A view of the Hometown High Bridge in Schuylkill County, which is owned by Carbon County.