Norfolk Southern, Watco set up Michigan Central Railway
Michigan Central Railway, a new joint venture of Norfolk Southern Railway Co. and Watco Co., will start freight rail operations across 384 route miles in Michigan and Indiana in the first quarter of 2008.
The Kalamazoo headquartered company will employ about 118 people and plans to invest more than $6 million improving track and equipment in its first year and $20 million over three years.
“The new Michigan Central will preserve and enhance freight rail service in southern Michigan,” said David C. Eyermann, Michigan Central’s interim president. “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.”
Michigan Central will operate over freight rail line segments between Ypsilanti and Kalamazoo; between Jackson and Lansing; and between Grand Rapids and Elkhart, Ind. It will also 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 in Washington. Norfolk Southern and Watco will make the required filings with the STB later this month.