Patriot Rail Corp. said it has executed a long-term license and operating agreement with the North Carolina Department of Transportation to commence rail service on the Piedmont and Northern Railway in Gaston County, North Carolina. Under the 20-year agreement, Patriot will be responsible for operating, maintaining and marketing freight rail service on the P&N.

The P&N, located approximately 20 miles west of Charlotte, N.C., is a 13-mile rail line that extends from Mount Holly to Gastonia, with a spur line towards Belmont. The railroad has strategic interchanges with Class 1 railroads Norfolk Southern Railway at Gastonia and CSX Transportation at Mount Holly. As part of the refurbishment of the rail line, NCDOT has completed an upgrade of the westernmost four miles of the rail line from Gastonia to Ranlo, and anticipates upgrading the remainder of the line during the spring of 2011. Patriot expects to commence rail service on the westernmost four miles in the first quarter of 2011. The rail line was purchased by NCDOT in 1991 and preserved as a rail corridor for future service.

"We are pleased to add the ‘new' P&N, our seventh railroad, to the Patriot family of railroads," said Gary Marino, chairman, president and CEO of Patriot Rail. "We have commenced the job of building business on the railroad and have been encouraged by the customer prospects. This railroad is in an ideal location for rail freight customers due to the dual Class 1 interchange and close proximity to a major transportation hub such as Charlotte. In addition, we look forward working with local interests, including the Gaston County Economic Development Commission and NCDOT, to attract new customers to the P&N."

Patriot Rail Corp. is a short line and regional freight railroad holding company based in Boca Raton, Fla., that owns and operates seven short line freight railroads comprising 344 total rail miles in nine states. By year-end 2010 Patriot Rail is expected to double its size as it completes the acquisition of Weyerhaeuser Company's six freight railroads, which operate more than 160 miles of rail line in four states.