Watco Gets STB OK to Acquire Lines From CN

Short line operator Watco has gained approval by the U.S. Surface Transportation Board to acquire hundreds of miles of former Wisconsin Central track in Ontario, Wisconsin and Michigan.

Watco plans to incorporate the track into its Grand Elk Railroad and a new railroad to be named Fox Valley & Lake Superior.

The track, which is being purchased from Canadian National, includes the former Algoma Central in Ontario and various branch lines in Michigan and Wisconsin once operated by WC.

Watco has indicated that it already has equipment and personnel in place to begin operating the routes once the acquisition gained regulatory approval.

The STB earlier this year had delayed the transaction after hearing concerns from some shippers. Those concerns have since been addressed, Watco officials said.

 “The Board received numerous comments supporting the transactions and numerous comments opposing it,” the STB wrote in a decision allowing the sale to go forth. “After careful consideration of all comments received, the Board finds that the issues raised do not demonstrate regulation is necessary to carry out the rail transportation policy and that it is appropriate to allow Watco to proceed with the exemption process.”

Tags: Algoma Central, Canadian National, Railroad line sales, U.S. Surface Transportation Board, Watco Companies, Wisconsin Central