WATCO Buying CSX Lines in Indiana, Illinois

Two CSX secondary routes in Indiana and Illinois are being acquired by Watco Companies.

The 126.7 miles of track involved in the transaction includes the Decatur and Danville Secondary subdivisions.

The routes are former Baltimore & Ohio and New York Central respectively.

Watco plans to name the property the Decatur & Eastern Illinois Railroad will be the new name for the 126.7 miles of track that Watco will acquire from CSX as the Class I railroad seeks to prune its network of lower-density, non-core routes.

The Decatur Subdivision extends from its namesake city in Illinois to Montezuma, Indiana. It once extended between Indianapolis and Springfield, Illinois.

The Danville Secondary runs from Terre Haute, Indiana, and Olivet, Illinois, and also includes the Paris Industrial Track in Paris, Illinois.

The track between Terre Haute and Paris once was part of the NYC’s Indianapolis-St. Louis mainline and hosted such crack passenger trains as the Southwestern Limited, Knickerbocker and Missourian.

The track north of Paris was a Central route that linked Northwest Indiana and Cairo, Illinois.

Watco has told the CSX union members who work on the affected lines that it will have employment opportunities in Decatur and Paris.

The Pittsburg, Kansas-based short line company is looking to hire four conductors, five engineers, a locomotive laborer, a track inspector, two track laborers and two track foremen.

CSX, which put the lines up for sale last January, expects the sale to close in early August.

Affected CSX employees who choose not to go to work for Watco, retire or resign, will be given the option of remaining with CSX.

Neither CSX or Watco disclosed the terms of the proposed sale.

Watco operates 38 short-line railroads in the United States with 5,100 miles of track. It also holds 31 industrial contract switching contracts.

Tags: Baltimore & Ohio, CSX, CSX Danville Secondary, CSX Decatur Subdivision, CSX secondary routes, Decatur & Eastern Illinois Railroad, Indiana short line railroads, New York Central, Short line railroads, Watco, Watco Companies