Escanaba and Lake Superior Railway (ELSR)

[chapmaja]

An agreement has been reached in principal for the GLOR to purchase the E&LS as well as lease the CN Ore Subdivision from Escanaba to Ishpeming. The deal will become effective on January 1st, 2025, or upon approval of the STB.

The deal includes the following stipulations.

1) GLOR will purchase and then "sell" the E&LS, including all trackage rights over CN to the owned subsidiary, Escanaba and Lake Superior Railway (ELSR).

2) ELSR will lease the CN Ore Subdivision from Escanaba to Ishpeming from CN. The lease is for a period of 25 years.

3) ELSR will obtain tracakge rights over CN between SSM, Ont and Escanaba in addition to the trackage rights they currently have between Escanaba and Pembine. These trackage rights will only apply to traffic destined for locations on the ELSR. No overhead traffic from or to CP (via SSAC) will be allowed

4) GLOR's current up trackage (Ishpeming to L'Anse and Trout Lake to Munising) will be transfered to the ELSR. Previous trackage rights agreements will remain in effect between Trout Lake and SSM, Ont.

5) ELSR will purchase the CN SSM, Michigan yard and begin rehabilitation and expansion of the property for future movement of the interchange between SSAC and CN to SSM, Michigan. This will be effective at a later date.

6) The Larkin Family will retain the Escanaba and Wells shop areas, as well as the following locomotives: BW&D 1, WPC 1, ELS 101, 102, 102B, 106, 201, 202, 204, 207, 209, 210, 211, 212, 213, 214, 300, 600, 901, 950, 1205, and 1216.

7) GLOR's ELSR will purchase the following locomotives: 400, 401, 402, 500, 501, 502, 503, 1200, 1201, 1202, 1220, 1221, 1222, 1223, 1224

ELRS will be building a locomotive maintainance facility at the Channing Yard Property to maintain all power on the line.

9) ELSR will take over switching of the Billerud plant in Escanaba effective on 1-1-2025. ELSR will reconnect the Ore Subdivision with the Billerud plant to allow effective switching of the plant.

10) ELSR will purchase the CN Ore Docks Yard.

11) CN will retain operational rights for ore trains running over the Ore Subdivision, should the need for any arise.

12) The Larkin family will retain excursion operations rights over the railroad, including trackage rights over CN lines (with approval of CN on a trip by trip basis). They will also maintain ownership of all passenger equipment used as part of said service.

13) Ownership of the ELSR will be 70% GLOR, 20% Canadian National, and 10% Larkin Family.

As a result of this transaction, GLOR is also expected to sell multiple locomotives to the ELSR from their railroad locomotive roster. While exact units have not been determined, it is estimated that several end cab switchers and SD40-2 locomotives will be included in the transaction to provide additional power for the GLOR.

All locomotives will be painted into a modified version of the current E&LS paint scheme. The scheme will change from the current orange, yellow and black scheme to a light blue, dark blue and yellow scheme, with the lettering to read, Escanaba and Lake Superior Railway.

The current plan is for all Escanaba based traffic to be interchanged to CN's train L55281, the Gladstone - Quinnesec local, this will include traffic from the Ore Subdivision bound for SSM and the SSAC.

ELSR will also have trackage rights over CN from Howard Wisconsin to interchange with CN in Green Bay's Yard.

A train operational plan will be posted upon approval of the deal by the STB.

[chapmaja]

The railroad, if the agreements are approved by the STB, will be divided into the following Divisions and Subdivisions.

Ishpeming Division - Escanaba to Baraga (only currently active to L'Anse)

L'Anse Subdivision - Euclid Yard to Baraga

Escanaba Subdivision - Escanaba to Euclid Yard

Newberry Division - Trout Lake to Munising

Channing Division - Green Bay to Rockland

Sidnaw Subdivision - Channing to Rockland including branch to Floodwood and Branch to Nestoria

Iron Mountain Subdivision - Green Bay to Channing

Menominee Division - Menominee to Crivitz (only active in Menominee and Marinette).

Trackage Rights over CN will be established / maintained between Escanaba and Pembine and Escanaba and SSM. ONT (including interchange with Newberry Subdivision)


All traffic contained on trackage rights trains must be destined for or coming from locations on the ELSR or SSAC. No traffic on trackage rights trains may be interchanged with CP in Sudbury. If traffic from the ELSR is destined for CP in Sudbury or Franz, it must be interchanged to CN who will then hand it off to SSAC in SSM. This clause is in place to prevent CN from losing traffic over through the trackage rights deal.

[chapmaja]

There has been an interesting development in the previously mentioned (on the GLOR page) decision to lease the L'Anse, and now subsequently the entire line from Escanaba to L'Anse from CN.

The reason GLOR was interested in this line had to do with the large volume of stamp sands which were present in the area north of L'Anse and Baraga. There was a plant being developed in Sudbury which would reprocess the old stamp sands and make industrial use of them. Environmentalists had been calling for the dredging and removal of the stamps sands in the region damaging the environment for years.

The news is a new potential customer for the stamp sands has been found. A company located in Colorado has found a way to make use of the used stamp sand in the making of shingles. They are opening an facility in Baraga which will dry the dredged sands and transload them into covered hoppers for transport. The facility is expected to be up and running by the Spring of 2025, when land based removal of the stamps sands will commence. Dredging of the sands from the Keewenaw Bay will not begin until all required environmental permits are pulled, which is estimated to be 2026 at the earliest.


The company anticipates shipping approximately 20 carloads of stamp sands per week, but the plans for the facility only call for a 5 car loading area.

GLOR / ELSR is unsure about how they will handle operations on the extension to Baraga. On possibility is to station a pair of locomotives in Baraga and operate a Baraga to L'Anse turn. The second option is to simply extend the train which runs to L'Anse to the end of the line in Baraga.

Also, there is a rumor that a new business may desire to move into the region near Ontonagon. While the location has not been released, this location will be located near the railbanked ROW but will not be at the location of the now removed Mill in town. Exact details of the business have not been announced, but it appears that this business will be in the forest products industry and may use both inbound and outbound rail service if it does in fact become a reality. The location would require the rebuilding of a majority of the ROW which was removed, which may be an obstacle to actually happening.

[chapmaja]

These is also another possible customer on the line west of Rockland, or a possible tranload in Rockland.

Highland Copper has continued their permitting process on the White Pine North Project, located near the now shuttered White Pine Copper Refinery. There are continued talks of reactivating the White Pine Refinery.

The first choice would be to ractivate the line, which GLOR does have an operational purchase right to, from its connection with the FOXY in Wisconsin. The estimated cost for this project would be roughly 80 million dollars due to significant damage to the line which occurred in 2016. Additionally, there are concerns that the rail line would travel through areas that are highly opposed to the project and have a history or blockading the railroad.

The second choice would be to develop a tranload operation either at Ontongan or Rockland along the existing right of way. The transload would be located approximately 30 miles from the mine location and would be on an existing rail line. While this is the 2nd option, it is likely the best option in terms of financial feasibility.

While the mine is still in the permitting process the decision on how to proceed is still years away.

The determination as to opening the transload in Ontongan or Rockland may depend on if any other customers open on the line.

[AARR]

Good one!

These is also another possible customer on the line west of Rockland, or a possible tranload in Rockland.

Highland Copper has continued their permitting process on the White Pine North Project, located near the now shuttered White Pine Copper Refinery. There are continued talks of reactivating the White Pine Refinery.

[chapmaja]

One more quick update on this operation.

The plans have been approved for the energy generation plant outside Newberry (Dollarville). This small plant, which will be operated by a local energy co-op will burn wood pellets being produced by Searchmont Pellets, who is building a pellet production plant alongside the SSAC.

Plans call for the plant to burn approximately 5-8 carloads per day of wood pellets when operating at peak capacity. The current plant is for a single unit train from Searchmont to Newberry to operate using trackage rights over CN from Trout Lake to SSM, Ont.

The plant will be location adjacent to the DNR dam access road.

To service the plant, a new passing siding off the main will be constructed west of Newberry and east of the plant. The unit train of pellets, expected to be brought once per week from Searchmont, will be dropped in this siding and the empties taken back to Searchmont. The plant will be serviced either daily or every other day by the Newberry local.

[chapmaja]

There may be further expansion of this operation as well.

GLOR / ELSR representitives are in talks with CN about how much it would cost to purchase all of the trackage CN currently operates north of Green Bay. While it seems like the price would be out of the question at this point, GLOR representivies are pushing CN for a cost for the lines. It seems like this would be a far distant possibility, but management would like a starting point to move from.

One point of any potential deal would be that CN would retain trackage rights over the entire railroad combination between Hearst and Green Bay.

Overall I feel this is a very long long shot possibility, but not completely impossible either.

[chapmaja]

The GLOR / ELSR officials got a response from CN about the cost, and as expected, CN wants substantially more than the GLOR is willing to pay for the trackage, so at this time GLOR / ELSR will not be attempting to purchase CN's lines north of Green Bay.

[chapmaja]

The discussions about the lines north of Green Bay did lead to a discussion about some other CN railroad property however. CN currently has a couple rail lines in the UP / Upper Wisconsin which are possibly going to be purchased by the GLOR / ELSR.

The first of these lines is the CN Iron Mountain Subdivision from Powers to Iron Mountain.
The second of these lines is the CN Pembine Subdivision, which runs from Hermansville to Goodman, WI. GLOR/ELSR will also pick up an option to a future purchase of the line from Goodman to Rhinelander from WATCO, who purchased that portion of the line 2022.

ELSR already uses trackage rights over the line from Escanaba to Pembine, so this will not have a signficiant impact on their operations. ELSR will maintain trackage rights from Powers to Escanaba as well.

The line will include the purchase of the decade and a half dormant line from Quinnesec to Niagara, WI. The reason for this option, is a company is looking at purchasing the former paper Mill location to create an addition biomass (wood) pellet plant for use in the Greener Energy Industry. If this were to be developed, rail service would resume over the line and the plan would be limited inbound shipments of pulpwood would be delivered, but a substantial portion of the outbound product with be shipped by rail to end users.

It would be expected that at least 4 locomotives would be purchased for the ELSR operations, likely from the GLOR's roster.

[chapmaja]

Escanaba and Lake Superior Railway
ELSE #26 SW1300
ELSR #400, GP38
ELSR #401 GP38 (Out of Service, Parts Source)
ELSR #402 GP38
ELSR #415 GP40M-2 Assigned to Trout Lake to Munising Line (Former GLOR #415)
ELSR #500 SD40-2
ELSR #501 SD40-2
ELSR #502 SD40-2
ELSR #503 SD40-2
ELSR #1201 SW8 – Menominee Branch Switcher
ELSR #1202 TR4A – Menominee Branch Switcher
ELSR #1220 SD9 – Out of Service
ELSR #1221 SD9
ELSR #1222 SD9 – Out of Service
ELSR #1223 SD9 – Wells Yard Switcher – mechanical issues with main generator, interchange restricted
ELSR #1224 SD9 – Out of Service
ELSR #2005 GP38M-2 Rebuilt in 2017 – Assigned to Trout Lake to Munising Line (Former GLOR #2005)
ELSR #2038 GP38-2 – Assigned to Trout Lake to Munising Line (Former GLOR #2038)
ELSR #2039 GP38-2 – Assigned to Trout Lake to Munising Line (Former GLOR #2039)
ELSR #4020 SD40M-2 – Assigned to Ishpeming to L’Anse segment. Former GLOR #4020
ELSR #4037 SD40-2 – Assigned to Ishpeming to L’Anse segment. Former GLOR #4037
ELSR #4042 SD40-2 (Former IBCX locomotive leased to Mineral Range)
ELSR #4043 SD40-2 (Former IBCX locomotive leased to Mineral Range)




The ELSR has made the decision regarding a few locomotives on the roster.

ELSR #1200 SW8 - Was never purchased by GLOR / Ownership retained by Larkin's for Escanaba Car shop Switcher. It was incorrectly listed as being included in the sale of the railroad to the GLOR.

In regards to the SD9, #1223. The unit is being removed from service at this time, and will be shipped to the GLOR's Lima Shops for a rebuild program. In order to be allowed to move this locomotive, the GLOR has aquired the traction motor sets from an unknown SD9 stored by LTEX in Ohio. These were shipped to the ELSR shops in Escanaba where they are being swapped with the current traction motors / wheel sets on 1223. This will allow 1223 to be shipped to Lima for the rebuild. #1220 will also be shipped to Lima for rebuilding. It is expected local crews in Escanaba will be attempting to get #1224 back into operational conditision as well.

#401 will be stripped of all usable parts in the next few months and the remaining portions of the locomotive will likely be scrapped, although there is discussion about sending the frame to Lima for use as a test bed for a new locomotive program GLOR shop forces may be starting.

Several locomotives were transfered from the GLOR roster to the ELSR roster to supplement locomotives already serving on the railroads lines.

[chapmaja]

The ELSR / GLOR, in conjunction with the State of Michigan and CN, as well as local authorities in several UP counties, have looked into the removal of stored cars on several ELSR lines in the UP of Michigan.

ELSR / GLOR, and the State of Michigan have reached an agreement in principal to removed the stored cars on a majority of the original E&LS mainline between Wells and Channing, with the track between those locations being removed and the line being converted to a trail. Exact starting and ending points for th trail have yet to be determined.

As part of this agreement however, the State of Michigan is agreeing to add about 10 miles worth of sidings, alongside the existing ELSR lines with the intent of these nerw tracks being used for car storage to replaced the tracks being used for car storage currently. The plan is for a majority of the money for the grading work of the new sidings to come from the state, while the ELSR will remove and relocate the existing tracks to be used on the siding. Exact locations for the new sidings it to be determined.

It is also possible that instead of using the tracks to build sidings, a new car storage yard may be built, with the intent of storing cars in an easier to access manner than what is currently available.

This will also require ELSR to be granted permanent trackage rights over CN from Escabana.

[chapmaja]

The GLOR / ELSR will be taking over another operation later this year. Much like in the case of GLOR's Toledo and Tiffin Railroad, the switching operations from the Port Inland facility will be leased out by Caramuse Lime and Stone to a GLOR affiliated company, the ELSR. ELSR will designate two crews to operation the railroad. The operations will include the round trip trains between the mine and the loading docks, as well as providing service to Greymont in Port Inland and the interchange with CN. ELSR will assume the lease of the current fleet of locomotives being used in the operation, 3 SD20's and 1 SD45R, the locomotive may be repainted, although that decision has not yet been determined. The transaction is pending regulatory approval and is expected to become official on 2-1-25 of when approval is granted. It is expected that the Caramuse crews will be hired as employees of the ELSR due in large part to their experience running the line with the unique challenges this line presents.

[chapmaja]

The GLOR / ELSR deal with CN has been finalized. The GLOR will be taking control of the Pembine Subdivision, upon approval of the STB and will be executing the purchase agreement from WATCO for the western end of the line. In addition, the ELSR / GLOR have finalized the agreement with CN for the Iron Mountain Subdivision.

As previously stated, there is a customer who has now executed the purchase agreement for the former mill property in Niagara, Wisconsin, which is serviced from the Iron Mountain Subsivision. The company will be making wood pellets for small power plants in the midwestern and central United States, using locally sourced pulpwood and chemical additives. Service to this plant will include inbound pulp wood and chemical additives, as well as outbound wood pellets.

The reason for the purchase of the Pembine from CN / WATCO appears to also be related to this purchase. The company who will be operating the pellet plant in Niagara is associated with a company who has taken an option to log several thousand acres of land between Rhinelander and Argonne in northern Wisconsin. They have contacted the railroads about restoring service to this line. WATCO and CN had no interest in taking on this project, so the GLOR / ELSR was contacted. The lines,(Pembine Subdivision from Goodman to Rhinelander and the branch to Niagara) will require substantial work to bring it back to a serviceable condition. In addition, the yard on the Quinnesec side of the river used to service the facility will also need to be rebuilt.

The routing for pulpwood for this facility would be Pembine Subdivision east to Pembine, then north on the ELSR mainline to Iron Mountain and from Iron Mountain east to the Niagara Mill.

Upon hearing of the possibility the line east of Rhinelander may be reactived, a customer has already approched GLOR / ELSR about possibly resuming rail service. Cenovus Energy operates an asphalt terminal on the east side of Rhinelander. The line to the facility has not been used in years as the company has been trucking asphalt into the terminal. Do the changing economies of trucking in northern Wisconsin, the company is looking at rail service, and was somewhat surprised (and possibly dismayed) to learn about the agreement with GLOR / ELSR to purchase the line east of Rhinelander.

GLOR / ELSR's current plan will be to continue with the purchase, then lease the line from Rhinelander Yard to the Cenovus facility, a distance of just over 1.25 miles back to WATCO and WATCO under the short term lease will provide service to the facility.

Upon renovations of the entire line, GLOR / ELSR will assume the responsibilities of switching the Cenovus plant.

The estimated routing for Cenovus traffic would be CN to Ladysmith, WI, to GLOR / ELSR in Rhinelander for final delivery.

All of these agreements, including the formation of the ELSR from assetts purchased by GLOR are still pending STB review. It is estimated that the formation of the ELSR will be approved by the end of the year and the acquisition approval of the remaining lines will take place in early 2025.

[chapmaja]

ELSR just learned that Billerud has decided to do some substantial upgrades over the next couple years at their Qunnesec and Escanaba Mills. These improvements will make the ELSR's operations easier in an around the facility and will hopefully increase traffic to both plants starting in early 2025.

Along with the purchase / lease of the trackage from CN, ELSR will be become the exclusive switchign provider for both the plants. As part of this deal, ELSR has acquired the MRIX GP10 #8329. This locomotive will be added to the ELSR roster and renumbered and repainted as ELSR #99.

In addition, ESLR will also be switching the Escanaba Billerud facility as well. The locomotives assigned to the plant, MRIX 1477 and MRIX 1479, both ex UP MP15AC's will be rebumbered and relettered in early 2025. Thew new numbers will be :

1477 - becomes ELSR 32
1479 - becomes ELSR 33

The operational plant for all traffic to be interchanged to CN in Escanaba now will see all traffic destined for CN will be brought to Escanaba. ESLR crews will break the trains down into both a NB and a SB train. The northbound cars will be handed off to CN crews in Escanaba to run to to SSM, where they will be handed to the SSAC. For SB traffic, cars destined for points south will picked up by CN's Gladstone to Green Bay train.

In addition, on a motive power note, the GLOR has decided which locomotives from their roster they will be transfering to the ELSR's roster.

The following units are both SD60M's and will be repainted into the ELSR's base paint scheme, but keep thier GLOR system number.

GLOR #6018 will become ELSR #6018
GLOR #6021 will become ELSR #6021

These units are expected to be the main power running between Escanaba and Quinnesec once the GLOR takes over the CN Iron Mountain Subdivision.

Exact operational plans for the ELSR have yet to be published, but it is estimated that the ELSR will be running a daily train between Escanaba and Quinnesec to service the mill. In addition, the Quinnesec Mill switcher will also be making the run over to the ELSR Junction in Iron Mountain as needed for cars being dropped off for Quinnesec / Niagara (when that operation starts up).

[chapmaja]

The agreements between the GLOR / E&LS / WATCO and CN were all approved in ealry to mid-Decemeber and the take over of operations by the ELSR official commenced on December 26th, 2024.

A more detailed look at the ELSR will be coming later this month.

[chapmaja]

Quick updates.

The approval to operate the Port Inland Railroad was approved. Operations by ELSR crews will begin on 2-1-2025. As expected, the previous crews will be terminated from their prior employement on 1-31-2025, and will be hired as employees of the ELSR on 2-1-2025. As part of the deal, the crew members will be given a 3 month severance package effective on their termination date of 1-31-2025, which includes benefits for the three month period. This provision is due to the 3 month probationary period and benefit exclusion included for new hires. Even though the package is being technically paid for by the previous owner, it was negotiated as part of the agreement and ELSR is ultimately paying for the package.

The railroad currently has 4 locomotives on site. 3 SD20's and 1 SD45R. The 4 locomotives will be purchased from their owners, the SD20's (Orange Port Terminal) and the SD45R (TLSX) and will eventually be repainted into the ELSE paint scheme.

In addition, the ELSR and State of Michigan have agreed to a preliminary agreement regarding the removal of certain segments of railroad used for car storage and the building of a car storage railroad yard alongside the railroad. The agreement calls for the ELSR to receive property near the LP Sagola plant for building a railroad yard. The primary purpose of this yard will be car storage, to relieve the car storage on the several out of service branch lines in upper Michigan and Wisconsin. Those lines will then be removed and the lines converted to a trail. The exact details of which lines and which portions of each line will be removed are yet to be determined.