Apache Railway
| Company type | Private |
|---|---|
| Industry | Railroad |
| Founded | 1917 |
| Headquarters | Holbrook , United States |
Area served | Arizona |
| Products | Rail freight, railcar maintenance and storage services |
| Owner | Holding entity co-owned by Aztec Land & Cattle Company and Midwest Poultry Producers, L.P. |
The Apache Railway is a short-line railroad based in Arizona, running from its connection with the BNSF Railway at Holbrook to the vicinity of the Snowflake Mill near Snowflake, Arizona, spanning . Originally owned by Abitibi Consolidated, the railway was acquired by Catalyst Paper in 2008. The Snowflake paper mill ceased operations permanently on September 30, 2012. In late 2015, a consortium including Aztec Land & Cattle Company and Midwest Poultry Producers, L.P. purchased the railway during bankruptcy proceedings, averting its closure and dismantling. The line continues to function today, generating most of its income from railcar maintenance and storage services. Since the mill's shutdown under Catalyst’s management, freight revenue has not rebounded, although initiatives to increase it remain underway.
History
Established in 1917, the Apache Railway commenced construction heading south from Holbrook, reaching Snowflake by 1918. Expansion extended to McNary in 1920 and further south to Maverick by 1944.
During the Great Depression, the railway entered receivership from October 1931 until 1936.
Starting in 1964, the White Mountain Scenic Railroad offered steam locomotive tourist excursions along Southwest Forest Industries’ track between McNary and Maverick. Due to declining track conditions, these excursions were progressively shortened and ultimately discontinued in 1976 when equipment was transferred to Utah. After the McNary sawmill closed, the stretch from Maverick to McNary was dismantled in 1982; sections of this former rail corridor were repurposed as recreational paths including the Railroad Grade Trail and Indian Springs Trail.
By the 1980s, Apache Railway remained Arizona’s last operational logging railroad; the section between Snowflake and McNary was abandoned in 1982.
In July 2012, Catalyst Paper announced intentions to close and sell both the railroad and paper mill. By December of that year, Catalyst reached an agreement to sell these assets to Hackman Capital. Hackman planned to dismantle both facilities; however, local authorities established a non-profit organization aiming to maintain rail service by acquiring the line through federal Railroad Rehabilitation and Improvement Financing loans—an application that was rejected in November 2014. Hackman regained control but filed for bankruptcy in May 2015 amid ongoing local efforts to secure USDA rural economic development funding. The bankruptcy court extended the sale deadline until November 30, setting the railroad’s valuation at $7.2 million.
Following hearings, Aztec Land & Cattle Company agreed to fulfill Hackman’s payment demands. In 2015, ownership of Apache Railway shares transferred to a holding entity co-owned by Aztec and Midwest Poultry Producers.
Operations
Data from 1996 indicated an annual traffic volume of approximately 16,000 railcars transporting:
- recycled fiber
- pulpwood
- wood chips
- coal
- paper
- chemicals
- grain
By 2018, Apache Railway had expanded its services to include railcar repairs, as well as wet and dry cleaning and storage facilities. After launching tank car repair operations in April 2018, demand surged considerably. Freight transportation now represents roughly 10% of total revenue, while railcar maintenance, cleaning, and storage contribute about 90%.
Passenger Operations
Passenger transportation continued until the mid-20th century, ceasing in the 1950s. As of July 1954, a mixed train service was scheduled to run thrice weekly between McNary and Holbrook.
Locomotive Fleet
The Apache Railway's motive power consists of ALCO Century 420 (C420) and MLW C424 engines.
Active roster includes:
- APA 81 - C420 (formerly Louisville & Nashville 1305)
- APA 82 - C420 (formerly Tennessee Central 400)
- APA 83 - C420 (formerly Monon 516)
- APA 84 - C420 (formerly Norfolk & Western 415)
- APA 97 - C424 (formerly Canadian Pacific)
- APA 98 - C424 (formerly Canadian Pacific 4227)
- APA 99 - C424 (formerly Canadian Pacific 4233)
Line Route
Principal stations along the route are:
- Holbrook (connection point with BNSF Railway's Gallup Subdivision)
- Blair
- Snowflake Pig Farm
- Tours
- Snowflake Junction
- Apache Railway Maintenance Shops
- Snowflake Paper Mill (operated by Catalyst Paper)
- Snowflake Junction
- Snowflake
Discontinued Segments
Segments abandoned in 1980 include:
- Snowflake (former interchange with the now-defunct Standard Lumber)
- Taylor
- Silver Lake
- Bell Siding
- Sponseller (featuring lumber spurs extending eastward)
- Pinetop Lakes (including lumber spurs)
- McNary (interchange with Southwest Forest Industries)
- Camp 28 (with associated lumber spurs)
A previous stretch spanning approximately two to three miles from south of Tours to Snowflake was discontinued; current operations cover the track from Tours to Snowflake Junction.