THE LITTLE RAILROAD THAT COULD

 

You never want to overlook opportunities in the corners of business. For many years, few paid much attention to a railroad (L & C) that ran from Lancaster to Chester in SC. Once it served the booming textile industry, but with much of that gone its cars sat underused on various sidetracks. 

The Stagger Act passed in 1980 allowed large rail companies to sell off unprofitable lines like L & C. Pete Claussen, a lawyer who loved trains, recognized an opportunity. He had already purchased other short lines to form his Gulf and Ohio Railroad. He paid $3 million for the 62 mile L & C. This worked out to $1 a foot, less than what a Lionel Toy Train set sells for. Along with the line came valuable industrial land.

Today, L & C serves burgeoning new industry along its route including Giti Tire, Gallo East Coast Winery, New Indie Mill and a chemical plant. The line connects to the CSX and Norfolk Southern national lines.

There are always rough edges of business that are overlooked gems, waiting to be reclaimed into profit.