December 12, 2007
Federal Board's Decision Shortchanges Michigan Rail Shippers and
Passengers, Norfolk Southern Says
NORFOLK, VA - Norfolk Southern Railway Company said that the Surface
Transportation Board's (STB) Dec. 10, 2007, denial of regulatory
approval for an innovative joint venture involving freight and passenger
rail service over 384 route miles in Michigan and Indiana represents a
lost opportunity for the region's shippers, passengers and communities.
Norfolk Southern and Watco Companies had planned jointly to form a new
regional railroad, Michigan Central Railway, to preserve and grow
freight service in the region. Amtrak passenger lines would have benefited
from an extended agreement ensuring continued maintenance and
investment levels on the rail lines between Ypsilanti and Kalamazoo, Mich.
The transaction was supported by rail freight customers, Amtrak, short
line railroads and a number of state and local officials.
Under the transaction, Norfolk Southern would have contributed to
Michigan Central most of its rail line segments and trackage rights in
Michigan west of Ypsilanti. Those lines carry rail freight service, as well
as much of Michigan's Amtrak passenger service. Watco would have
contributed several million dollars in cash and locomotives. The new,
independently operated Michigan Central planned to employ up to 118 people
and concentrate on reinvesting its revenues in track and infrastructure.
"It is a sad day for rail transportation in Michigan," said Wick
Moorman, Norfolk Southern's chief executive officer. "The proposal
was a creative, farsighted response to the long-term trend of shrin