History of the Reading Blue Mountain & Northern Railroad

The Reading Blue Mountain and Northern Railroad (RBMN), with its corporate headquarters in Port Clinton, is a privately held railroad company serving major businesses in nine Eastern Pennsylvania counties, (Berks, Bradford, Carbon, Columbia, Lackawanna, Luzerne, Northumberland, Schuylkill, and Wyoming). The railroad runs over 400 miles from Reading PA to Mehoopany PA and it also operates the 7-mile rail line from Towanda to Monroeton in Bradford County. We offer both freight services and passenger excursion operations and we currently employ over 350 employees.

The company began operations in September of 1983, starting as a 13-mile short line, operating a state-owned branch line between Hamburg and Temple PA. Named The Blue Mountain & Reading (BM&R), we were successful in rehabilitating the line, and providing service to freight customers. A passenger excursion business was also developed.

Within a few years, the BM&R took on the operations of three more state-owned branch lines, to provide reliable freight service to many eastern Pennsylvania Industries.

In December 1990, Conrail was looking to sell off over 150 miles of branch lines in the Anthracite Coal Regions. The BM&R took on this challenge, and expanded the company, changing the name to Reading Blue Mountain and Northern. Operations began on December 15, 1990.

The first few years required massive amounts of work to repair the badly neglected trackage, and to develop a steady pattern of service for the many industries that relied on rail service.

In July of 1992, Conrail sold some additional track near Hazelton, to serve the Jeddo Coal Company. This would allow the bulk of all remaining rail shipments of anthracite coal to be funneled through Reading. At the same time RBMN also acquired the connection from East Mahanoy Jct. to Oneida and the line to Delano from Schuylkill County.

In order to have better control over the supply of empty hopper-cars for coal shipments, in 1995 RBMN began to purchase a fleet of cars, starting with 265 cars dedicated to Quebec Iron & Titanium Service. By the end of 2013, RBMN purchased over 1000 freight cars. (As of Q4 of 2023, RBMN has expanded to its fleet to 1800).

The RBMN had been operating from several former Conrail offices around the system. In late 1995 these offices were combined into a new corporate headquarters at Port Clinton.

As Conrail continued their program of spinning off rail lines that did not fit into its core network, the Reading Blue Mountain & Northern expanded again. In August of 1996, RBMN acquired a portion of Conrail’s Lehigh Division. Comprised of over one hundred miles of mostly ex-Lehigh Valley Railroad trackage, the Lehigh rail line stretches from the southern foot of the Pocono Mountains at Lehighton through Wilkes-Barre and Scranton and onward to Wyoming County. To connect its two divisions, RBMN negotiated trackage rights over the Carbon-County owned 18-mile railroad between Hometown and Jim Thorpe. This was subsequentially purchased in 2022.

In the fall of 1996 Conrail announced an intention to merge with CSX. After a fierce fight over the future of Conrail, CSX ultimately agreed to split Conrail with its main rival, Norfolk Southern Railway (NS). On June 1, 1999, NS took over all of the portions of Conrail that connected with RBMN.

The railroad was growing in 2001 prompting RBMN to purchase a fleet of high horsepower six-axle locomotives and retired some of the older units that had begun to wear out. RBMN was now entirely an EMD powered, diesel locomotive railroad.

In August of 2001, RBMN completed negotiations with NS and Procter & Gamble to take over exclusive service to P&G’s largest manufacturing facility, at Mehoopany, PA. Working with NS we were able to provide P&G with an excellent service and rate package, which ensured that inbound raw material continued to move by rail.

In November of 2001, RBMN reached an agreement to take over the ownership of the track within the Crestwood Industrial Park. With this agreement in place, we were able to guarantee good long-term rail service to the many customers located there.

Having worked to ensure a steady stream of customer business along our Lehigh Division, we turned our attention to reaching agreements for the use of the line as a key transportation corridor. Both Norfolk Southern and Canadian Pacific were interested in using the Lehigh Line as a north-south corridor for goods moving from the Northeast and Canada to the New York City market via Allentown, as well as points south and east of Reading. In June of 2002, we entered into a trackage rights agreement with NS, and in August 2002 we renewed a prior agreement with CP. Combined, these two carriers used the Lehigh Line to move over eighty thousand carloads a year.

In the summer of 2002, RBMN began a critical step to enable the direct physical connection of our two Divisions without the need to run over any foreign track. In July, we entered into a long-term lease of two abandoned railroad bridges over the Lehigh River from the Pennsylvania Department of Conservation and Natural Resources. With that agreement in place, we were able to turn our attention to restoration of the bridges and rail infrastructure, and the necessary work along the Lehigh River to connect the railroads. The project would culminate in the opening of the bridge in November of 2003. Given the significance of RBMN’s achievements in 2002, RBMN received its first recognition as “Regional Railroad of the Year” by Railway Age magazine.

The two Divisions were now connected, and the Lehigh Line had a solid business base from both on-line customers and overhead trackage rights revenues. RBMN had begun restoring the yard at Penobscot in 2000, which resulted in an agreement made in May of 2003 to have NS deliver inbound interchange cars there, allowing greatly improved car cycle time.

By the time RBMN celebrated its twentieth anniversary in the fall of 2003, we were a very successful short line. We had built solid traffic bases on both our Lehigh and Reading Divisions, and we had put in place an excellent operation with upgraded track, locomotives, and freight cars. We were gaining a reputation for customer service and attention to detail. Evidence of our customer focus became clear to all when, in 2002, the rail industry publication Railway Age chose the Reading Blue Mountain & Northern Railroad as Regional Railroad of the Year (the first of three awards to date) . We won the award by creating an innovative sand/stone backhaul move, which involved three railroads and took thousands of trucks off the highway. We followed that up in 2004 when we were awarded a Marketing Award from the NS Agriculture Products Group for our outstanding business development.

In 2005, RBMN took a big step forward to expand its passenger excursion business. With the acquisition of the Lehigh Line and the new connections between Jim Thorpe and the Lehigh River Gorge, RBMN was now positioned to offer the region a quality tourist attraction. In May of 2005, the Lehigh Gorge Scenic Railway was born. Every weekend and holiday from May to Christmas, hundreds of visitors to Jim Thorpe board our passenger coaches for a ride into the Gorge.

As our operation and business expanded, the need to upgrade facilities grew as well. In the spring of 2006, we proudly opened our new Penobscot Yard office building.

As RBMN grew, so did its commitment to its employees. Along with regular pay increases and profit-sharing checks, the Company decided to offer its employees the best health care plan in the region, and with no deductibles! RBMN also decided to go smoke-free and instituted a policy of not hiring smokers.

With a solid freight business in hand and a growing passenger operation underway, Andy Muller decided to begin the renovation of his steam engines. At the end of 2007, No. 425 was back in service, pulling passenger trains and occasionally the company Office Car Specials, to take thousands of guests on steam excursion trips throughout our operating territory.


HIGHLIGHTS BY YEAR

2009

  • The RBMN system expanded again with the addition of the seven-mile Towanda line near the New York state border. This line is located in the heart of the Marcellus Shale region.

2010

  • The Norfolk Southern (NS) Corporation presented its “Marketing Initiative Award” to RBMN for Metals & Construction materials related business during its 9th Annual Short Line Meeting.

  • RBMN secures its first “Marketing Award” from the American Short Line and Regional Railroad Association (ASLRRA) for demonstrating innovative service and outstanding marketing achievement; one of the industry’s highest honors.

2011

  • RBMN was recognized a second time by Railway Age as “Regional Railroad of the Year” for the development of port operations for the export of anthracite coal.

  • RBMN received its first platinum reward for achieving over 1,000 carloads of traffic via Norfolk Southern at the 10th Annual Short Line Meeting.

2012

  • Reading & Northern entered into an agreement with CAN DO to purchase the rail assets of the Humboldt Industrial Park in Hazleton, the region's largest rail-served industrial park.

  • Keeping momentum from 2011, RBMN again received the platinum award from Norfolk Southern for achieving over 1,000 carloads of traffic.

  • In addition to achieving platinum status for carloads from NS, RBMN received the “Business Development Award” due to exceptional growth in the paper, clay, and forest products industries.

2013

  • During Norfolk Southern’s Annual Short Line Meeting, RBMN secured the “Marketing Achievement Award” for its record-breaking coal business numbers.

2014

  • After four years, RBMN once again receives ASLRRA’s marketing award for demonstrating innovative service and outstanding marketing achievement.

2015

  • The Reading and Northern was recognized again when we were named the “Regional Railroad of the Year” by Railway Age Magazine. This is the third time we have won this prestigious award and we are the only railroad ever to have achieved this recognition three times.

2016

  • Reading and Northern takes over service within Humboldt Industrial Park and its 11 new customers on Jan 1, 2016.

  • We were pleased to be the winner of the “American Short line and Regional Railroad Association's Marketing Award”. This is the third time we have won the award which recognized our rapid establishment of our railroad operated, leased transload and storage warehouse in Old Forge PA. This facility was set up and running in record time to meet our customer's stringent requirements.

  • ASLRRA awards us our third “Marketing Achievement Award”.

2018

  • Following progressive success from 2016, RBMN receives its fourth “Marketing Achievement Award” from ASLRRA.

2019

  • Purchased a building in Ransom, PA to operate an owned warehouse marketed for the distribution of forest products and wood pulp in particular.  The warehouse is intended to be a catalyst to generate additional rail business.

2020

  • Completed the Nesquehoning Bridge Phase II project to provide for progressive train movements across the Lehigh River.  Total cost of the project was $14 million dollars, a combination of state and private funding.

  • Named “Regional Railroad of the Year for the fourth time by Railway Age magazine.

2021

  • Bought the 19-mile rail line from Carbon County for 4.7 million dollars.  This connects our two Divisions, Reading and Lehigh under common private ownership.

  • Developed greenfield site for a sand distribution terminal in Tunkhannock, PA

2022

April

  • Invested $2 million dollars to purchase from Kovach 10 acres containing nine buildings for company expansion efforts in Nesquehoning.

May

  • First unit train of sand received and delivered to the new Tunkhannock sand terminal.

September

  • Andy Muller Jr. receives the “Friend of Railway Preservation Award” from the Heritage Rail Alliance in Hartford, Connecticut.

SUMMARY - 2022

Full year 2022 represented the most successful year in RBMN’s history as we smashed all traffic and excursion ridership records. Despite an off year for the North American railroad industry with traffic down, we enjoyed 15% growth in business fueled by our new sand terminal and increased demand for Pennsylvania anthracite following the Russian invasion of Ukraine.

On the passenger side, we eclipsed 250,000 riders for the first time in our history.

2023

March

  • As a result of unprecedented growth in its freight business, Reading & Northern Railroad announced changes in the leadership of its marketing department.  James Raffa was promoted to Senior Vice President - Petrochemicals & Minerals. Rian Nemeroff was named Senior Vice President - Consumer Products.  William Clark remains Senior Vice President - Coal.  With these three seasoned railroad marketing officials, each with over 30 years of experience, Reading and Northern is well positioned for continued growth and prosperity.

  • Reading & Northern Railroad announced the appointment of Christina (Tina) Muller-Levan as Executive Vice President- Strategic Planning.  She will report to company founder and owner, CEO Andy Muller, Jr.

 April

  • Reading & Northern Railroad welcomed a new customer to the railroad, Stella-Jones Corporation (SJC) who opened a wood utility pole distribution yard in Morea, PA. 

  • The American Short Line and Regional Railroad Association (ASLRRA) awarded one of the industry’s highest honors for marketing achievement to the Reading and Northern.  This is the fifth time RBMN has won this prestigious award in the last 15 years.  Jim Cerulli, Vice President Industrial Development, accepted the award at a ceremony in New Orleans, LA.

May

  • The Reading Blue Mountain & Northern Railroad’s (RBMN) CEO, Mr. Andy Muller Jr. was awarded the distinction of 2023’s “Influential Leaders” by the renowned magazine Railway Age. His nomination was supported by letters and testimonials from dozens of elected state senators and state representatives, other regional officials, dozens of RBMN rail customers and the entire management of the Reading & Northern.  He was awarded the cover photograph for his lifetime of achievement as an “exemplary Executive” in the railroad industry.

    CLICK TO READ ANDY’S FEATURE IN RAILWAY AGE’S ONLINE MAGAZINE

  • The Reading & Northern Railroad decided to use its own money to completely fund a new station to bring passenger trains back to the city of Pittston.  The plans by the railroad to open this new station were well-received by local officials.  Railroad management has met and discussed the reintroduction of passenger service with city officials for several months.  Following a grand opening on May 27, 2023, the station will host passenger trains every weekend. The scenic all-day excursions operate between Pittston and Jim Thorpe.

November

  • RBMN celebrates its 40th anniversary with two newly painted diesel engines numbered “1983” and “2023” to represent years in service. Paint schemes of the locomotives were carefully curated to reflect RBMN’s history, legacy, and its current iteration while looking towards the future. You may read the R&N Magazine publication highlighting our 40th anniversary here.

December

SUMMARY - 2023

For the second year in a row, RBMN reported double-digit growth in both its freight and passenger excursion operations. We eclipsed 37,000 freight cars handled over its system; up from 33,000 cars in 2022. Its excursion ridership went from 250,000 riders in 2022 to over 320,000 riders in 2023.

The growth in freight traffic was due to a significant increase in anthracite coal where we handled over one million tons of anthracite coal; an RBMN personal record and a first in our history. Also, Reading and Northern’s new frac sand terminal in Tunkhannock doubled its volume in its second full year of operation.


All of our awards are in recognition of our strong and effective development efforts in attracting new business and customers to the Reading and Northern Railroad.  These efforts are continuing and we look forward to additional success and recognition in the years to come.

The evolution of the Reading & Northern has been a wonderful ride. You can keep abreast of the latest RBMN developments by coming to this website, and by reading our quarterly newsletter.

Thanks for your interest and your support.