Norfolk Southern Corp. and the Watco Cos. Inc. are teaming up to launch a new short line in Michigan. Beginning in first-quarter 2008, the Michigan Central Railway will be headquartered in Kalamazoo and operate 384 track miles in Michigan and Indiana.
Later this month, the Class I and holding company - which owns 14 short lines operating in 16 states - will seek Surface Transportation Board approval to form the Michigan Central under a joint venture. Watco will be the short line’s parent company.
Michigan Central will operate line segments between Ypsilanti and Kalamazoo, Mich.; Jackson and Lansing, Mich.; and Grand Rapids, Mich., and Elkhart, Ind. The short line also will acquire NS’ trackage rights for an Amtrak-owned line between Kalamazoo and the Michigan/Indiana state line.
Interesting question. One can’t help but wonder with all the auto industry plants in that area closing if the NS isn’t looking for a graceful exit while keeping the politicians happy.
The reason I asked was the Grand Rapids to Elkhart part…Grand Rapids keeps rining a bell so to speak…they shipped…furniture or cereal or something in big blocks of boxcars at one time…just can’t get the idea out of my head there was good reason for this district…
But the idea that NS is looking for a out and letting Watco take over a set of lines NS no longer wants to worry over makes sense too.
Pat’s a native of Grand Rapids. It was “The Furniture City” at one time, but that pretty well has dried up and blown away. The NS (ex-Conrail) line to Grand Rapids has a GM parts plant as its biggest customer–go to their yard in the city and you’ll find lots of auto-parts boxes, and relatively little else.
I don’t know whether this business is in trouble with GM’s latest closings, but the plant in Lansing almost certainly is.
Battle Creek ships lots of cereal, and the new line will serve the cereal plants (both Kellogg and Post), but has to share the business with CN.
This may be interesting to watch–I expect that CSX may also sell some of its remaining Michigan lines if it’s allowed to, and a consolidation might be beneficial.
Here is my take on it, and I really dont have much knowledge of the traffic patterns in that area…
NS is probably looking at these lines as nothing more than branch lines. I doubt if there is much overhead traffic on these routes. Michigan is sort of a weird railroad state. There is not much, other than CN that passes thru the state. Most of it originates or is destined to the state. Take a look at it on a map and you will understand why.
So, my guess is that NS is running a series of locals to handle the traffic in the area and little else. So, lease out the track, or perhaps sell it and then get the long haul on freight delivered to Elkhart by the shortline.
Grand Rapids is still a big furniture manufacturing town…most of it is by private fleet (Steelcase, Herman Miller, etc).
Michigan Central Railway Will Initiate Freight Service in Michigan and Indiana
KALAMAZOO, MI. - The Michigan Central Railway will initiate freight rail service over 384 route miles of rail line in Michigan and Indiana in first-quarter 2008 under a joint venture to be formed by Norfolk Southern Railway Company and Watco Companies, the parent company of the newly formed Michigan Central.
“The new Michigan Central will preserve and enhance freight rail service in southern Michigan,” said David C. Eyermann, Michigan Central’s interim president. “The company will be headquartered in Kalamazoo and will employ approximately 118 people. In the first year alone we plan to invest more than $6 million to improve track and equipment to capitalize on the rail-served economic development opportunities we envision for the region. A critical component of industrial growth and job creation is a vibrant freight rail network, and we are excited about the partnerships we will establish with shippers doing business in southern Michigan, as well as with state and local governments on the Michigan Central network.”
The new Michigan Central will operate over freight rail line segments between Ypsilanti and Kalamazoo; between Jackson and Lansing; and between Grand Rapids and Elkhart, Ind. The Michigan Central also will acquire Norfolk Southern’s trackage rights on the Amtrak-owned line between Kalamazoo and the Michigan/Indiana state line. The transaction is subject to regulatory approval by the Surface Transportation Board (STB) in Washington, D.C. Norfolk Southern and Watco will make the required filings with the STB later this month.
“Our focus will be to grow the business and add value for our customers and the Michigan economy,” Eyermann said. "We will have a marketing team based in Kalamazoo that will be tasked to move additional freight
As a resident on Grand Rapids, I find it humorous watching people take cracks at something they appear to know nothing about. For the full story, and to see why WATCO getting the line is REALLY bad, click here and go to the press release thread: http://www.michiganrailroads.com/MichRRs/Discuss/DiscGroupFrameLP.htm read the followings posts, you’ll see.
Amtrak owns the line west of Kalamazoo, known as the Michigan Corridor, trains operate over 100 mph on this line, and over 60 east of Kzoo on NS. A dozen Amtrak trains use the NS soon to be WATCO line aday, and they and the MI Government are not happy about the sale.
If you’ve ever heard of the A&O and what a disaster it was, you’ll see why WATCO isn’t welcome. It wasn’t all WATCO’s fault, but they are not looked kindly upon here. Trains magazinemakes WATCO look a lot better than it actually is…
As far as who the MICHIGAN CENTRAL could interchange with NS at ypsilanti,mich- ANN ARBOR RR at ann arbor ,mi CN at battle creek, mi CSX at lansing, mi CN At lansing,mi At grand rapids,mi there is CSX, MARQUETTE RAIL, GRAND RAPIDS EASTERN At kalamazoo, mi CN. At schoolcraft, mi CN At elkhart, ind NS In white pigeon,mi or WPJct there is the MICHIGAN SOUTHERN RAILROAD. If anybody can think of anymore let me know.
I’ve forgotten whether there’s a potential for interchange with the SouthShore at Michigan City (Michigan Central’s trackage rights would get them through there). There is no physical connection with anyone else west of Kalamazoo that I’m aware of. Interchange with NS at Porter would accomplish nothing that Elkhart couldn’t handle better.
Does anyone else in Michigan feel like we’re about to eat it on this deal? I am horribly concerned as the wolverine is about to break the half million rider mark this year, it’s going to have the feet knocked out from under it. I am a huge advocate of mass rail transit in Michigan. I think we can be the template for the rail renisaunce for the United States. but we don’t do this by piece mealing out rail system out to the Nth shortline operator.
Don’t get me wrong i am a fan of what several operators are doing in the state most notably, Lou Ferris’s Great Lakes Central (formerly the TSBY, nee the bulk of AA) and the employee owned Marquette Rail on the west side of the state. Also Railamerica’s several shortlines in Michigan do good business.
However our homegrown Ann Arbor Railroad(the south end of the line from Ann Arbor to Toledo) has kept commuter trains from going downtown Ann Arbor to eleviate conjestion, blocked a greenbelt expension by the city that would actually keep people off their line, and is having the City of Ann Arbor’s police pass out $500.00 trespassing tickets at a manic rate.
Watco may surpise me but right frankly, I’m scared for the future of passenger service in this state.