Under the new agreement, Ferronor will operate Codelco's 9 locomotives and 186 rail cars, as well as hold exclusive operating rights on the rail line under a 15-year lease. The Potrerillos Railway operates 91 kilometers (57 miles) of rail line from Potrerillos, Chile, to a connection with Ferronor at Diego Almagro, Chile, with continuing service for 159 kilometers (99 miles) on Ferronor to the Port of Barquitos.

Under the new transportation contract, Ferronor will handle approximately 900,000 tons, or 26,000 carloads, of new business each year, including movements of sulfuric acid, diesel fuel, copper ore and cathodes between the Port of Barquitos and Potrerillos. This traffic represents nearly all of the logistical requirements for Codelco's Potrerillos copper production facility. Ferronor expects to hire an additional twenty-five employees to handle this new business.

"This new agreement allows Ferronor to acquire the assets as well as the operating rights of a strategically located railroad with no initial investment," said Gary O. Marino, Chairman, President and CEO of RailAmerica. "Over the past five years under RailAmerica's ownership, Ferronor has proven itself as one of the most successful rail operators in South America, and the confidence that Codelco has placed in us through the execution of this new agreement is evidence of this success. We expect that this business will increase Ferronor's revenues by approximately $4.6 million and EBITDA by approximately $1 million per year, both 20% more than their existing run rate. In addition, this new agreement expands Ferronor's operating reach and improves its base of business for many years to come."

Ferronor, a 2,331-kilometer (1,490 mile) railroad serving northern Chile, is majority-owned (55%) and operated by RailAmerica with minority Chilean partner Andres Pirazzoli y Cia., Ltda. The railroad operates through the heart of the Chilean mining region with branch lines connecting to five Pacific coast ports and the only operating line crossing the Andes Mountains with connecting rail services into Argentina.

RailAmerica, Inc. (www.railamerica.com), the world's largest short line and regional railroad operator, currently owns 39 short line and regional railroads operating approximately 11,000 route miles in the United States, Canada, Australia and Chile. In North America, the Company's railroads operate in 22 states and six Canadian provinces. Internationally, the Company operates an additional 4,300 route miles under track access arrangements in Australia and Argentina. In October 2001, RailAmerica was ranked 85th on Forbes magazine's list of the 200 Best Small Companies in America; in July 2001, the Company was named to the Russell 2000(R) Index.