Paying for it

A little blurb in the Arrivals & Departures section of the June 2012 issue of Trains Magazine ( page 11) said Michigan is negotiating with NS to buy the Kalamazoo-Dearborn segment, and paid to remove slow orders on the line last year". What exactly does this mean?

My understanding is that last year’s payments to NS went to removing slow orders on portions of the line that were not involved in the major slowdowns this year.

I believe that agreements for purchase of the line are now in place, and also understand that work has been done that will reverse those unfortunate slowdowns of the last couple of months.

Once the state has purchased the line (Federal funds are involved here, I think), Amtrak will assume operations, and the line will eventually be upgraded to 110-mph speeds, with the required track upgrading and control systems.

Michigan paid NS to remove the slow orders?

They paid to have the repairs done needed to upgrade the line or return it to timetable track speed.

The slow orders are in place because parts of the line have defects that, while forcing trains to move slower than normal over these spot, do not prevent the use of the line.

Depending on the value of the line to the class 1 carrier, some slow orders are in effect, permanent, because the cost of repairing the defect would not be recouped by being able to run faster trains.

Michigan in effect, paid to fix the line and now wants to buy it and upgrade it even more, which would suit NS, because they really don’t run that much priority/profit traffic on it.

Ed,

The Michigan line does nothing to enhance NS’s profit. There are few customers between Dear-born and an Kalamazoo save for the Ford plant and Jiffy Miix in Chlesea… If the state takes control of the line NS would still be allowed to run freight but have to allow Amtrak right proirty.