When a private equity firm and a group of investors wanted to evaluate the economic pro-forma of potentially buying an aggregates company that had a shortline railroad interest it came to Tealinc with the complex question of how to evaluate the package.
The aggregates company had a less than stellar reputation in timely providing quality product and the shortline was being run as side line operation. Part of Tealinc assignment was to conduct an economic evaluation by understanding and explaining to the investor group the inter-relationship of the aggregates company and the shortline railroad. This accomplished Tealinc then was tasked with interpreting century old railroad operating agreements, working with two Class I Railroads and several customers on the line in addition to the aggregates company acquirers to devise an operating and rate structure that would work for everyone involved. Consecutively with this task Tealinc researched depot sites, rail and transload rates to put in a rail-truck operating system that would create an acceptable economic return for the investor group.
Upon putting in place all the planning structures and working with the investor group legal and finance team Tealinc then was directed to set up the operations and suggest an operating team. Tealinc used its’ extensive internal experience base and successfully set up the operations and tapped it’s network of top level executive candidates resulting in one candidate accepting the President position at the new company.

The world of preparing to receive bulk hazardous waste is a complex one. It requires an integrated team approach from operations design to rail build out and extensions to a definitive operations plan that passes scrutiny of state and federal DEQ and regulators with a continued focus on profitability. Tealinc played a key role from the initial proposal in 2004 to receipt of shipments in 2009 and continues to work with WCS today. See what Waste Control Specialists, LLC. has to say about our work. We also encourage you to visit their website to see their capabilities at http://www.wcstexas.com/.

Tealinc has conducted three market studies for three separate grain and grain processing companies whereby the questions were generally the same but specific to each company and geographic location. The basic premise in each market study was to site from one to three additional facilities that would fit with the base operation of the parent organization. Tealinc researched market demographics from a commodity source (growing conditions, amount of specific commodities grown) and transportation alternatives (multi-railroad service, barge service and in some cases deep water ports) to projected future competitors positioning in the market.

In May 2005, we received a call from a client which went something like this. Client, “I’m sitting at a table with an architectural design firm, my operations managers and some lawyers, we’re looking at a rail build out drawing and I’ve asked the question, can anyone tell me who in this room has any experience at rail build outs and how do we know we’re doing it right? I called five people I know in the industry and out of the five your name came up unsolicited three times. When can you get here?”
That was an interesting start to a long term client relationship. We began by reviewing the goals of the operation, looking at the land footprint (which was a real challenge) and integrating the operating requirements with a shortline railroad and Class I railroad. The net result was a fully operational unit train receiving operation meeting all Class I tariff and operational requirements while planning add on capabilities for future development.

When our client was beginning to shift from the traditional collections – processing – truck to landfill operations to one in which the processing and shipment operations took a different form, they asked Tealinc to become involved as part of the overall team. Nearby landfills were running out of capacity and their disposal fees were reflective of this restriction. A rail shipping solution was a practical, but lengthy process as baled MSW had never been shipped by rail for the carriers involved.
Tealinc’s involvement was to locate rail equipment that would work for the baled MSW loading configuration necessary to optimize tonnage, devise a rail shipping plan, work with the Class I and industrial carriers on rates and service and assist with the rail plan at the landfill destination.

Tealinc has arranged for and been the shipping agent for rolling stock between the United States and China, Peru, Brazil, Canada and Mexico. We have the international management experience to obtain and fill out the correct forms that comply with appropriate regulations to get your rolling stock out of the country to your destination of choice. For some clients we research optimal modes of transportation and ports of departure to obtain the best world-wide shipping rates. Not only do we consult or manage international shipping we also ship our own rolling stock internationally. In addition we consult on rail build outs, rolling stock and manage RFP’s specializing in South American countries.

An aggregate producer was interested in pursuing additional sales and asked that we explore alternative markets for them. They had conducted an extensive market study at a high level that indicated that there should be additional aggregate business for their quarries. We first verified their thinking with our own independent study and drilled down into the details with specific potential customers. We also integrated this market study into a more comprehensive consulting assignment with port and depot networks to reach the market via truck, rail and barge. After completing the aggregates market study, we then encouraged our customer to conduct a ballast market study where the aggregate producer would produce ballast for the rail industry. This study included a comprehensive review of the ballast: quality with Class I railroads; supply and demand; and, a feasibility review of price versus physically reachable markets.

A group of developers exploring the sale of a mid-sized metallurgical coal mine engaged Tealinc to conduct a feasibility study of shipping coal from the mine to various port and overseas destinations. Tealinc researched comparative coal quality from other metallurgical mines in the neighboring states, potential rail rates to three alternative ports and shipping rates from the ports to the final destination. The end result was a favorable market position of the mine resulting in a sale of the mine to future owners.

An investment management firm engaged Tealinc in finding an acquisition candidate in the rail transportation industry with very specific market presence and EBITDA requirements. Tealinc conducted extensive research using its knowledge of the industry and suggested a select group of private and public companies to serve as an investment foundation as well as selective market enhancements to meet the specific requirements of the investment management firm. The investment management firm is actively engaged in discussion with a potential acquisition candidate.

Tealinc has conducted three market studies for three separate grain and grain processing companies whereby the questions were generally the same but specific to each company and geographic location. The basic premise in each market study was to site from one to three additional facilities that would fit with the base operation of the parent organization. Tealinc researched market demographics from a commodity source (growing conditions, amount of specific commodities grown) and transportation alternatives (multi-railroad service, barge service and in some cases deep water ports) to projected future competitors positioning in the market.

Tealinc routinely performs rolling stock (railcars and locomotive) appraisals for investors, Lessors, banks, finance institutions and rolling stock buyers and sellers. In some cases these are extensive covering multiple year time frames and railcar / locomotive types.

A client shipping hazardous waste in containers wanted to explore transferring from truck to rail for containerized drums of PCB contaminated hazardous waste. Tealinc worked with the shipper, Class I railroad and DOT’s involved to determine if the program would be feasible from a cost, liability and public perception standpoint.