Middletown and New Jersey Railroad
| Company type | Subsidiary |
|---|---|
| Industry | Rail transport |
| Predecessor | Middletown and New Jersey Railway |
| Fate | Acquired by Regional Rail, LLC in 2009 |
| Headquarters | Middletown, New York , United States |
Area served | Southeastern New York, primarily Orange County and the Hudson Valley region |
Key people | Lucy Rasmussen (operational leadership after 2004) |
| Products | Freight rail services |
| Owner | Regional Rail, LLC (parent: Levine Leichtman Capital Partners since 2015) |
| Parent | Regional Rail, LLC |
The Middletown and New Jersey Railroad (reporting mark MNJ) operates a 43-mile rail network in southeastern New York, primarily serving Orange County and the Hudson Valley region. Additionally, it holds trackage rights on three separate branch lines totaling 40 miles, which are leased from Norfolk Southern within Orange County. Originally known as the Middletown and New Jersey Railway, the company was acquired in 2009 by Regional Rail, LLC—a parent entity of the East Penn Railroad—via a newly established subsidiary. In 2015, Levine Leichtman Capital Partners (LLCP) acquired Regional Rail, representing a major capital commitment to expanding the railroad’s operations.
In 2012, the railroad obtained a $1.6 million grant from the New York State Department of Transportation aimed at modernizing its rail infrastructure across four lines in Orange County. Significant rehabilitation efforts targeted the corridors between Campbell Hall and Warwick, various segments in Middletown, and the stretch connecting Walden to Montgomery, thereby improving operational capabilities and bolstering freight transportation within the area.
New York & Erie Railroad
The New York and Erie Railroad—an antecedent of the Erie Railroad—extended its line to Middletown on June 1, 1843, remaining the sole rail service provider in that area for more than twenty years. During the early 1840s, NY&E played a pivotal role in advancing Orange County’s dairy sector by facilitating the shipment of fresh milk to New York City without spoilage, which allowed farmers to diversify income beyond butter production. This development stimulated the establishment of several smaller railroads across southeastern New York, including the Middletown, Unionville and Water Gap Railroad. The NY&E underwent reorganization on April 30, 1861, becoming the Erie Railroad.
Middletown, Unionville and Water Gap Railroad
In 1866, residents of Middletown, Westtown, and Unionville explored constructing a rail line extending to Deckertown, New Jersey. After fourteen months of construction, the Middletown, Unionville and Water Gap Railroad was completed in December 1867, spanning 14 miles from Middletown—where it connected with NY&E—to Unionville. Built to Erie’s broad gauge specifications, it was leased to Erie and commenced operations as the "Unionville Branch" on May 15, 1868.
New York and Oswego Midland Railroad
Formed on January 11, 1866, the New York and Oswego Midland Railroad sought to establish a connection between Oswego on Lake Ontario and the Hudson River opposite New York City. By 1871, it had reached Middletown and intended to create a through route by partnering with three New Jersey railroads that consolidated into the New Jersey Midland Railroad in 1870. The MU&WG served as a critical link between NY&OM and NJM after being leased by NY&OM on April 1, 1872. The MU&WG was converted to standard gauge and linked via a newly constructed short track in Middletown. Following NY&OM’s bankruptcy, NJM assumed lease operations of MU&WG in 1873.
New York, Susquehanna and Western Railroad
The New Jersey Midland reorganized as the Midland Railroad of New Jersey in 1880 before merging with other lines in 1881 to form the New York, Susquehanna and Western Railroad. Meanwhile, NY&OM transitioned into the New York, Ontario and Western in 1879; concurrently, Erie reorganized as the New York, Lake Erie & Western in 1878. The MU&WG benefited from strategic connections to three prominent carriers—the NYLE&W (Erie), O&W, and NYS&W—providing shippers with multiple freight routing alternatives. This competitive positioning allowed for improved freight rates and an expanded revenue share over several decades, supporting continuous growth through its successor companies until the late 1950s.
Erie Railroad resumes control
Until 1882, the MU&WG functioned as the western terminus of the NYS&W, which then extended westward to link with the anthracite coal regions through the Delaware, Lackawanna and Western Railroad. Subsequently, the MU&WG operated as the Middletown Branch of the NYS&W. In 1898, the Erie Railroad, successor to the NYLE&W, reacquired control over both NYS&W and MU&WG. The MU&WG held significant value primarily due to its substantial milk shipments—among the highest per mile in the United States—serving New York metropolitan markets via its three connecting lines. The presence of numerous creameries and condensaries along its route highlighted its critical importance in regional dairy distribution.
Middletown and Unionville Railroad
Following Erie’s failure to meet bond interest payments, bondholders of MU&WG assumed control on September 8, 1913, establishing the independent Middletown and Unionville Railroad on December 1, 1913, under Vice President and General Manager J. A. Smith. This shortline thrived by capitalizing on heavy milk traffic—including both fluid and condensed products—as well as related freight such as livestock, feed, bottles, and coal for power generation, sustaining strong financial results.
Middletown and New Jersey Railroad
After foreclosure sale on January 15, 1947 to feed merchants Manning, Simmons, and Clark, the enterprise was reorganized as the Middletown and New Jersey Railway Company on October 1, 1947. During the 1950s, operations centered around a large GLF feed mill located near Dolson Avenue in Middletown. Upon the passing of the original proprietors by mid-decade, ownership transitioned around 1956 to John Manning and Marc Suffern, initiating a new era of strategic management and operational stability.
Traffic decline and resurgence
Passenger operations ceased in June 1940 after contracts ended due to relocation of Middletown High School; railbuses had primarily transported students along the line.
Between 1938 and 1942, a close alliance formed between the independent NYS&W and O&W railroads, channeling substantial coal traffic via the M&U line and reinforcing its role as a vital corridor. However, by the late 1950s, M&NJ lost two of its three connections when O&W shut down in 1957 and NYS&W abandoned its Hanford Branch in 1958.
On February 20, 1960, ownership was transferred to partners Jay Wulfson, Jim Wright, and Pierre Rasmussen. After a fire destroyed GLF’s Dolson Avenue mill in 1962, it was reconstructed as a larger facility with an annual throughput capacity of 50,000 tons; GLF later merged into Agway. The facility managed up to twelve daily shipments. The Empire State Railway Museum conducted excursions on this line during the early 1960s before relocating.
Service was progressively reduced from Unionville to Johnson by late 1968 and further cut back to Slate Hill within two years. Key industrial customers such as Agway (fertilizer plant opened in 1966), Balchem (chemical plant established in 1968), and Polytherm Plastics (now Genpak since 1969) emerged as primary clients through the late twentieth century. The Agway feed mill ceased operations in the mid-1980s; fertilizer shipments and Balchem’s rail service ended by 2000.
Pete Rasmussen became majority owner as well as President and General Manager after Wulfson departed to found Vermont Railway. Upon Rasmussen’s death in 2004, his widow Lucy assumed operational leadership until Chartwell International gained majority ownership in December 2005 and completed full acquisition by February 2006. Financial difficulties at Chartwell led to a sale to Regional Rail, LLC in April 2009.
Under Regional Rail’s stewardship—supported by grants from NYS DOT and focused marketing efforts—the railroad experienced significant revitalization. The former Agway fertilizer site was redeveloped into an intermodal trans-load facility hosting four consistent customers handling commodities including beer, paper products, lumber, fertilizer, grains, salt brine, potatoes, onions, plastics, and chemicals. Leasing Norfolk Southern tracks provided essential operating revenue that preserved three lines from abandonment.
Significantly, following Hurricane Irene’s devastation of mainlines in 2011, this railroad maintained the only continuous through route. It managed rerouted MTA and Norfolk Southern trains alongside NYSW freight through Campbell Hall cluster and yard—underscoring its vital function in regional freight transportation and market presence.
Main line
The railway manages of track and connects with Norfolk Southern Railway at both Middletown and Campbell Hall, as well as with the New York Susquehanna and Western Railroad in Warwick.
Track improvements were financed through a New York State Department of Transportation grant totaling $750,000 in 2007, followed by an additional $2 million in 2009 to support potential industrial developments. After the damage caused by Hurricane Irene, rehabilitation efforts recommenced in October 2010. In August 2011, MNJ secured an extra $1.6 million to cover storm-related repairs and infrastructure enhancements.
In 2010, after submitting a filing with the Surface Transportation Board, the railroad leased three branch lines and associated yards from Norfolk Southern Railway. On October 6, 2010, M&NJ expanded its operational footprint by assuming control of 40 miles of leased trackage and obtaining rights on the Walden and Maybrook industrial lines as well as the Hudson Secondary line, extending from Metro-North Railroad's Southern Tier Line at Campbell Hall to Warwick.
Buildings
M&NJ’s administrative offices are housed within a repurposed 1872 train station located in Middletown, New York, which includes an adjacent engine shed. Nearby stands a contemporary engine facility that accommodates the railroad’s only active EMD GP9 diesel-electric locomotive.
Rolling stock
| Road Number | Manufacturer | Model | Notes |
|---|---|---|---|
| 2174 | EMD | GP38-2 | |
| 2175 | EMD | GP38-2 | |
| 5615 | EMD | GP38-2 | formerly NS 5615, painted black |
| 773 | EMD | GP9u | formerly Amtrak 773 |
| 1 | GE | 44-ton | scrapped in July 2021 |
| 2 | GE | 44-ton | sold December 2021; currently displayed in Port Jervis, NY |
The locomotives are presently employed primarily for hauling rolling stock on behalf of other railroads. Historically, the company has possessed both steam and diesel engines alongside boxcars.
Steam locomotives
Throughout its history and that of its predecessors, the railroad has operated eight used steam engines featuring wheel configurations such as 4-4-0, 2-6-0, 4-6-0, and 2-8-0. Among these were three camelback models. The Middletown and Unionville Railroad (M&U) depended on repair services from New York, Ontario and Western shops and frequently leased locomotives from O&W. The last steam locomotive owned outright by the railroad was retired in 1944; subsequently, M&U leased steam engines from O&W and NYS&W.
In the 1980s, M&NJ acquired a former Bath and Hammondsport Railroad 2-6-0 locomotive with plans to restore it for freight operations; it was sold in 2006 and is now undergoing restoration at the Western Maryland Scenic Railroad.
During the 1960s, while based at Middletown, the Empire State Railway Museum operated locomotive 103 (a 2-6-2 from Sumter & Choctaw Railroad) for excursion services under the name Middletown & Orange Railroad. This engine is currently stored at the Railroad Museum of New England awaiting potential restoration.
Diesel locomotives
The first General Electric 44-ton switcher (#1) entered M&NJ's roster in April 1946 after being purchased by three of its feed customers. The O&W provided maintenance for #1 and lent its own 44-ton units (101 and 105) during servicing periods. In 1963, M&NJ expanded its fleet with a second GE 44-tonner (#2) acquired from Calco Chemical in Bound Brook, New Jersey. From approximately 1981 until July 2007, #2 served as the sole operational locomotive for the railway.
Although #1 was kept in storage at Middletown for some time, it was dismantled in July 2021 along with two other GE locomotives. Later that year, #2 was sold to the nonprofit Operation Toy Train (now TOYX, Inc.) and is exhibited at the Erie Turntable in Port Jervis, New York. It remains the only preserved piece of M&NJ equipment and is undergoing extensive restoration supported by parts donated from #1 as of April 2024.
Current motive power primarily consists of EMD GP38-2 units numbered 2174, 2175, and 5615 (recently obtained from Norfolk Southern), alongside a Canadian-built EMD GP9u (ex-Amtrak) #773 acquired in July 2007. Since October 2010, the railroad has also leased GE B30-7 ESPN 7811 and GE B23-7 ESPN 5114 locomotives from its affiliate East Penn Railroad.
Railroad cars
Operating as a short-line railroad, M&NJ generally maintains a limited number of railcars. Nonetheless, during the late 1970s, the company managed a fleet of 500 leased 50-foot blue boxcars obtained from the National Railway Utilization Company (NRUC). These boxcars were utilized to transport finished products from Polytherm and generated income through interchange operations throughout the United States and Canada, with M&NJ receiving 10% of the usage charges. By the early 1980s, the market for incentive per diem boxcars had diminished significantly, prompting M&NJ to take back these cars and store them on approximately two miles of idle track while seeking purchasers—a process that extended over nearly ten years.
See also