A diverse group of investors has purchased the Santa Maria Valley Railroad, with a vision of expanding services into the tourism market through dinner or excursion trains along the 14-mile system.

The sale of the railroad from the Capt. G Allan Hancock Family to Coast Belle Rail Corp. was finalized Friday and made public Monday. The selling price is confidential, according to both parties.

Coast Belle Rail Corp. is a partnership formed in 1991 of Central Coast residents to invest in publicly traded railroad companies. The goal of the group has always been investing in a short-line railroad, and the firm has always had its eye on SMVRR, said Rob Himoto, president and investment manager of Coast Belle.

The interest of the diverse group of investors is based in the general success of the industry.

“Railroads, the industry in general, people think it's an old industry and (people) think the government helps out quite a bit, but it's actually a growing industry,” Himoto said. “It's not as glamorous as the high-tech or bio-tech industries, but it does quite well.”

Stocks for large railroad companies are performing, he added, “and Wall Street is starting to take notice.”

“It's the most cost effective way to transport (goods) and its more environmentally friendly” than trucking, Himoto said.

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Previous investments of the group include the Cascade Railcorp. That operation encompassed Nobles Rock Railroad, Dakota Southern Railroad and Minnesota Central Railroad, according to a written statement.

Though the new owners are interested in expanding the tourism aspect of the Santa Maria railroad, they have no intention of leaving the freight business, which Himoto described as the “bread and butter” of SMVRR.

He noted that he is talking to current freight customers to see where services can be improved.

Trying to calm any concerns nearby residents may have, Himoto said any dinner or excursion train would probably be on the weekend and would probably only be an additional two or three trips.

Looking at an added tourism focus would be beneficial for the valley.

Gina Keough, with the Santa Maria Valley Chamber of Commerce Visitor and Convention Bureau, said marketing a train in this area would not be difficult and would be something that interests the organization.

“Napa has a wine train and many people call here thinking they are calling Napa and asking about a wine train,” Keough said.

The chamber may also be able to help secure grant funding and other resources for starting such a project, she said.

“It would add so much and be something fun and different for our area,” Keough said. “A lot of people love the train experience.”

The principal investors in Coastal Belle are: Himoto; Cathy Larsen of San Luis Obispo, who is the secretary and director of the group; Robin Neubert of Ventura, who is in charge of the company Web site, marketing and special projects; Ray Himoto of the Santa Barbara area; Jim Rita of Ventura, who will also be working on marketing; and Sarah Smith of Morro Bay, who will act as adviser for dinner train and excursion train operations.

All of the company's employees moved with the railroad to the new ownership expect for SMVRR President Michael Parry, who will stay with the Hancock family's other ventures.

Himoto said he was happy to have the SMVRR employees and praised their care of the railroad.

The Hancock family had announced last summer its intent to sell the railroad. However, the La Brea Land Company, which was a subsidy of the SMVRR, was not for sale.

The land company handles development and property management of the Hancock property, which includes many acres in the Santa Maria downtown.

What used to be SMVRR under the Hancock family is now G. A. Hancock Properties, said Parry, president of the newly created land company.

The Hancock Family is weighing its next step, Parry said, but it will continue to manage and develop the more than 20 acres they own.

The railway was originally included in Hancock's purchase of the Santa Maria Oil Field in 1925.

Over time, Hancock improved the lines, learned how to drive a locomotive, and built the railroad into one of the busiest of its kind in the country, according to historians.

The short-line railroad was established in 1911 to transport oil from Roadamite in Cat Canyon to Union Pacific lines in Guadalupe.

Today, instead of oil-related cargo, the railroad transports agricultural and construction commodities.

Malia Spencer can be reached at 739-2219 or mspencer@santa

mariatimes.com.

October 3, 2006