AMTRAK tug of war WATCO

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OwlCaboose2853
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AMTRAK tug of war WATCO

Unread post by OwlCaboose2853 »

Rail leaders say ride on
Area officials still want guarantees line not in jeopardy

Nick Schirripa
The Enquirer

Railroad officials said Wednesday that Amtrak service between Ypsilanti and Kalamazoo is expected to continue after rail ownership changes hands, but some local officials remain skeptical of the passenger service's future.

The railroad corridor currently is owned by Norfolk, Va.-based Norfolk Southern Corp., but the company is working on a deal to pass ownership and maintenance responsibilities to the smaller Pittsburg, Kan.-based Watco Cos. Inc.

Some skepticism was borne from the first-of-its-kind agreement that will create the Michigan Central Railway LLC, former U.S. Rep. Joe Schwarz, R-Battle Creek, said.

"This deal sounds good, and I give Norfolk Southern and Watco credit for trying to put together a business agreement that will benefit the shippers in this line," Schwarz said. "It is, however, blazing a new trail as far as passenger rail is concerned.

"There is virtually no other place in the United States where Amtrak runs over short-line railroad."

Representatives from several communities along the rail line — including Portage, Kalamazoo, Battle Creek, Albion, Marshall, Jackson and Ann Arbor — met Wednesday in Battle Creek with state transportation officials and representatives from Norfolk Southern and Watco. Among them were Schwarz and state Sen. Mark Schauer, D-Bedford Township.

Schwarz said the communities along the east-west rail "need ironclad, bulletproof assurances" that the rail will be maintained to Amtrak standards and "that nothing will happen that is going to endanger the Amtrak service."

Under the deal, Michigan Central Railway would own and maintain the section of rail from Kalamazoo to Ypsilanti.

The company also would own freight lines between Jackson and Lansing and between Grand Rapids and Elkhart, Ind.

Watco would become the parent company of the newly formed railroad, to be headquartered in Kalamazoo.

The plan already has been submitted to the federal Surface Transportation Board for approval, and Schwarz said the plan needs to contain guarantees that Amtrak service will not be interrupted and the track will be maintained to Amtrak standards.

Ed McKechnie, Watco's chief commercial officer, said the plan called for service to be continued and said as much as $20 million might be spent in the first three years of operation to maintain or upgrade the tracks, which is more than Norfolk Southern has spent improving those tracks in the past 10 years.

"I want you to know that what you've heard here today is backed up in writing," he said. "Everything Amtrak has asked for, we have said yes. We're going to live up to the commitment of maintaining this line."

Because of Watco's lack of experience with passenger rail, critics contend, there needs to be a solid plan in place that will guarantee Amtrak service will not be interrupted if Watco, or any other company, defaults on the deal.

"What if Watco can't make it and this becomes a losing proposition for them?" Schwarz said. "This rail has got to be open, it's got to be running and it's got to be open and running at Amtrak standards."

McKechnie said there have been discussions about who would get the railroad if Watco is unable to afford its operation and maintenance, but he was unable to give details Wednesday.

The proposed deal would give Amtrak the ability to maintain the railroad if Watco is unable, McKechnie said, and there even will be a provision that would enable Amtrak to go to federal court and make Watco pay for repairs.

http://www.battlecreekenquirer.com/apps ... /708300329
Last edited by OwlCaboose2853 on Fri Aug 31, 2007 6:00 am, edited 1 time in total.
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Unread post by LSRC »

"There is virtually no other place in the United States where Amtrak runs over short-line railroad."
I think that they're talking about a long run over a shortline, but what about the Minnesota Commercial? Amtrak's...I forget.... runs over a section of the Minnesota Commercial to get to the Amtrak station (on MC rails) and across town.

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Firms pledge upkeep on Amtrak lines

Thursday, August 30, 2007
By Alex Nixon
anixon@kalamazoogazette.com 388-2783

BATTLE CREEK -- If they showed up expecting a fight, politicians from across southern Michigan left Battle Creek disappointed Wednesday morning.

More than a dozen people representing cities along the train lines used by Amtrak between Ypsilanti and Kalamazoo met with railroad-company officials to let the companies know the cities were opposed to any disruption to passenger-train service in Michigan.

Former Congressman Joe Schwarz said he was encouraged by a verbal pledge that rail lines would be maintained to Amtrak standards. But the Battle Creek Republican said the words needed to be followed with action.

``You have to insist that if they make a verbal and legal commitment to maintain Amtrak service that it's legally enforceable,'' Schwarz said.

At issue is a proposed joint venture, Michigan Central Railway LLC, between Norfolk Southern Corp. and Watco Cos. Inc. to operate 299 miles of track in Michigan and northern Indiana, including a line Amtrak uses between Ypsilanti and Kalamazoo.

Watco Chief Commercial Officer Ed McKechnie told officials Wednesday morning that Watco and Norfolk Southern are nearing a legally binding deal with Amtrak that the railway be maintained to Amtrak standards.

``Everything Amtrak has asked for we've said `yes' to,'' McKechnie said.

To be profitable, Amtrak trains need to be able to maintain speeds of 79 mph on the tracks between Kalamazoo and Ypsilanti, officials said. The fear among leaders from cities along the rail line was that the Michigan Central deal would mean less money invested in track maintenance, which would lower track speeds.

But McKechnie said Michigan Central would spend an average of $18,000 per track mile on maintenance -- about three times as much as Watco normally spends on tracks.

The company also is committed to investing $20 million in the system over the next three years -- which is more than Norfolk Southern spent on the tracks in the past 10 years, he said.

The federal Surface Transportation Board, which is reviewing the Michigan Central proposal, will take public comments on the deal until Sept. 18. It is scheduled to issue a decision Oct. 25.%%bodybegin%%
http://www.mlive.com/business/kzgazette ... xml&coll=7
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Some worry about rail deal
Changes coming to local rail lines

August 29, 2007 - 9:42PM


BATTLE CREEK (NEWSCHANNEL 3) - For over a month leaders and customers have worried about whether the sound of an Amtrak train would disappear and put a stop to dreams of high speed rail service in Michigan.

It all stems from plans surrounding the 115 miles of track between Kalamazoo and Ypsilanti.
The current owners, Norfolk Southern, plan to transfer ownership to a smaller company, Watco.

Leaders were worried Watco wouldn't be able to maintain the railway for Amtrak service.

While leaders thought transferring ownership to a smaller company would mean losing Amtrak service, Watco now says they guarantee that won't be the case.

The sound of an Amtrak train is something 3-year-old Darius is used to, he's been riding since he was just two weeks old. Not having this as an option would put him and mom out of options. "I wouldn't travel, goodbye to traveling, I'd have to get a car," said Kissey Rome.

It's why leaders from Ann Arbor to Battle Creek, state and local, met with Ed McKechnie to make sure Amtrak won't be going anywhere.

"It would be a tremendous loss to the southern corridor of the state of Michigan," said Battle Creek Mayor John Godfrey.

"Amtrak will rely on this new company to maintain the line up to the current standards of 79 mph," said Senator Mark Schauer.

It's something McKechnie says Watco will guarantee leaders in writing.

"We're willing to make a binding commitment and put our money where our mouth is to make sure that happens," said McKechnie.

Helping to secure dreams of someday boosting this railway to 110 mph, making a high speed corridor between Chicago and Detroit.

The dream is safer today than it was yesterday. And it's helping to secure transportation for customers like Louise who can no longer drive long distances. "There's many many people like me who need the train."

Leaders say Wednesday's meeting calmed fears, but they want to get a hard copy of that guarantee.

Norfolk Southern will still be involved working with Watco in the joint venture the Michigan Central Railway.
http://www.wwmt.com/news/amtrak_37667__ ... watco.html
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Article published Aug 31, 2007
EDITORIAL

Officials right to press for passenger-service assurance

Last year, 54,238 passengers boarded or got off Amtrak trains at the Battle Creek station. That's 6,453 more than the previous year, and the number of local riders has been climbing steadily for the past five years.

Statewide, Amtrak ridership increased 8.6 percent between 2005 and 2006.

Clearly, there is a strong demand for passenger railroad service in southern Michigan. But some fear that a plan to sell the stretch of track that Amtrak uses between Kalamazoo and Ypsilanti could jeopardize passenger service.

A proposed deal between current owner Norfolk Southern Corp. and Watco Cos. Inc. would create Michigan Central Railway LLC, which would own and maintain the Kalamazoo-Ypsilanti section of rail. Watco would be the parent company of Michigan Central, which would be headquartered in Kalamazoo.

Because the smaller Watco is a Class Three railroad, critics of the deal fear that it would not be able to provide the necessary support and maintenance to keep the track viable for passenger service.

Those fears were allayed somewhat this week when railroad officials met with leaders from communities along the rail line - including Battle Creek, Albion, Marshall, Kalamazoo, Jackson, Portage and Ann Arbor - to assure them that Amtrak service will continue after the change in ownership.

Watco officials told local leaders Wednesday that the plan, already submitted to the federal Surface Transportation Board for approval, calls for passenger service to continue, with possibly as much as $20 million spent in the first three years to maintain or upgrade the track.

That is reassuring, but we think local officials are right to continue to press for ironclad guarantees that Amtrak service will continue, even if the business deal fails to be profitable for Watco. Such guarantees are necessary because the plan is not business as usual. There are virtually no other places in the nation where Amtrak runs on track maintained by short-line railroads, such as Watco.

Southern Michigan cannot risk losing passenger rail service. That can only be assured if any change-of-ownership agreement includes clear, indisputable language guaranteeing it.

http://www.battlecreekenquirer.com/apps ... /708310309
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Re: AMTRAK tug of war WATCO

Unread post by J T »

OwlCaboose2853 wrote: "There is virtually no other place in the United States where Amtrak runs over short-line railroad."
Is this true? I swear I read in the October issue of Trains magazine that there are others. I think they listed at least three.

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Unread post by AARR »

I believe Amtrak operates over New England Central (former Central Vermont). But they may not have a 79mph speed limit like NS's Michigan Lines.
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Unread post by OwlCaboose2853 »

Don Simon wrote:I believe Amtrak operates over New England Central (former Central Vermont). But they may not have a 79mph speed limit like NS's Michigan Lines.
Yes, I remembered that had read newspaper in article which ones Detroit News or Detroit Free Press last long ago about Amtrak has using a 79 mph speed between east of Ypsilanti (after Willow Run) to Dearborn.
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Unread post by MSchwiebert »

Watco & NS have done more than enough to placate Amtrak. They are not (and should not) be considered a deciding factor in this transaction. To base a business decision on an entity that is in as tenious position as Amtrak is, would not make sense.

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MSchwiebert wrote:Watco & NS have done more than enough to placate Amtrak. They are not (and should not) be considered a deciding factor in this transaction. To base a business decision on an entity that is in as tenious position as Amtrak is, would not make sense.
I'm glad someone can think passed news papers and politicians, and think for them self.

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Unread post by leo28150 »

Don, not quite; top speed between these two points is 70.....

I'm thinkin' that people are forgeting that the amount that is mentioned was going to be spent on things other than just track for the WHOLE railroad, not just the Kal-Ypsi section; heck, they could spend that much on just the Lansing Br. in order to get it outta da mud. Since this section has been designated a high-speed corridor and there has been a renewed interest in using rail as an option to our national trasportation woes, not to mention of SOME of Watco's history of them taking on new rr's and then pulling out of those deals---A & O, Palouse & Coulee City RR--anybody who has any kind of interest in this line--be it for business( personal or professional ) or using the available Amtrak service--should have concerns regarding this transaction. I haven't seen anything by either Watco or NS that would lead me to believe that Amtrak has been placated--I myself put 'Pledge' on a rag to wipe up dust.

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Unread post by amtrakjackson »

Thanks, Lee, I was just going to mention that. And since Amtrak signed new contracts with the RRs, there is nothing that says track must be maintained for xx speed, unless Amtrak wants to cough up the money. You folks that think we can come up with that through the price of train tickets are out of line- it's like asking Greyhound to pay for maintaining I-94 to truck weight standards through ticket revenue.

This country has some real problems in the way of transportation public policy. For many years it has been a "God given right" to "free" roads. We say Amtrak is a "subsidy" while we subsidize "necessary" airport security for millions to fly to Las Vegas and gamble. WTF, people. Oh, that's right... there is an endangered turtle species that we can't move, along the UP between LA and Vegas, that's why we can't "subsidize" Amtrak.
leo28150 wrote:Don, not quite; top speed between these two points is 70.....

I'm thinkin' that people are forgeting that the amount that is mentioned was going to be spent on things other than just track for the WHOLE railroad, not just the Kal-Ypsi section; heck, they could spend that much on just the Lansing Br. in order to get it outta da mud. Since this section has been designated a high-speed corridor and there has been a renewed interest in using rail as an option to our national trasportation woes, not to mention of SOME of Watco's history of them taking on new rr's and then pulling out of those deals---A & O, Palouse & Coulee City RR--anybody who has any kind of interest in this line--be it for business( personal or professional ) or using the available Amtrak service--should have concerns regarding this transaction. I haven't seen anything by either Watco or NS that would lead me to believe that Amtrak has been placated--I myself put 'Pledge' on a rag to wipe up dust.

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Unread post by MSchwiebert »

I don't understand why there is this thought that Amtrak should be considered the 'driver' in this transaction. They are a tenant - no more - no less. It would be like if I owned a duplex, and wanted to sell it. Whoever was renting the other portion could not impose conditions on the sale because they do not own the house! Same with Amtrak.
For those opposed, what options present themselves? NS could retain the line - and they have already stated that it makes more financial sense to spend money on upkeep on lines that contribute more. Amtrak purchase? they plead poverty just about every time they have an opportunity to purchase a line and control their own destiny. State purchase? By all accounts the State of Michigan is not in good $ shape, and to spend money to buy a railroad when schools etc. need help is not a good decision politically. Sale to a different short line operator? I'm suspecting that the NS had a number of bid packages to choose from - and selected the one that is most benificial for them - that's the way business works. Sale to another Class I? There aren't any that would benefit from buying the line. CSX & CN have competing lines that are underutilized, as for the CP it would offer no advantages over the agreement they have with NS now, and why in the world would BNSF or UP need to get to Detroit?

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Unread post by AARR »

MSchwiebert said:
I don't understand why there is this thought that Amtrak should be considered the 'driver' in this transaction. They are a tenant - no more - no less. It would be like if I owned a duplex, and wanted to sell it. Whoever was renting the other portion could not impose conditions on the sale because they do not own the house! Same with Amtrak.
First of all I agree with MSchwiebert. But I'm compassionate toward people who are less fortunate (I'm talking about those who are making their best efforts to be self-sufficient). What about the people who depend on Amtrak for reliable transportation? It's my experience that many of the people I've seen who need Amtrak don't have other dependable transportation. If Amtrak goes away between Detroit and Chicago what happens to them?
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Unread post by OwlCaboose2853 »

Don Simon wrote:MSchwiebert said:
I don't understand why there is this thought that Amtrak should be considered the 'driver' in this transaction. They are a tenant - no more - no less. It would be like if I owned a duplex, and wanted to sell it. Whoever was renting the other portion could not impose conditions on the sale because they do not own the house! Same with Amtrak.
First of all I agree with MSchwiebert. But I'm compassionate toward people who are less fortunate (I'm talking about those who are making their best efforts to be self-sufficient). What about the people who depend on Amtrak for reliable transportation? It's my experience that many of the people I've seen who need Amtrak don't have other dependable transportation. If Amtrak goes away between Detroit and Chicago what happens to them?
Remember that people whom have use lease cars as my wife and I have a lease car. They don't want use cost expenses increase of lease cent per mileages. The vehicles can leave at Amtrak parking lot properties. They can afford Amtrak fares then go to farther anywhere to there, lease cars saving mileages. I am not good explaining for these. You know what I mean. Amtrak’s are important on the railroads. NS does know it, WATCO don't but maybe do!
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Unread post by MSchwiebert »

I am not saying that Amtrak should be booted off the Michigan line, just that one has to remember what Amtrak's 'place at the table' is. Is this venture different than what Watco has done in the past, in some respects yes, but I'm more inclined to give them the benefit of the doubt in the proposal than to see the status quo.

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Unread post by amtrakjackson »

How about charging a toll on the interstates to cover actual costs, e.g. police, signage, maintenance, instead of a government subsidy like we have now. Then we can have a level playing field.

Amtrak isn't for the "less fortunate"- do you know the ridership make-up? When the price of a one-way Ann Arbor-Chicago is over $50.00, we're not talking about the down-and-out. It's a matter of convenience. How many of you guys drive from Detroit to Chicago twice a week?
I-94 is a hell of a good way to get yourself killed in an accident.

If we as a state could stop sinking our money into that great toilet called Detroit (or Detroilet, as it's been known) and all of it's ills and leeches, we could have a great railroad. Aren't people embarrassed that France's TGV whips our a$$, and the city-pairs and population density is similar to DET-CHI?

While we rebuilt Europe's railways after WWII, the US turned its back on our own railroads, and instead built the Interstates. We taxed the railroads on existing right of way and structures, and slapped on FRA-mandated speed limits (that aren't even as strict in Canada!).

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Unread post by sd70accsxt700 »

Amtrakjackson, as much as I am with you right there on this one, I can also see MSchwiebert side. The thing you are talking about is, that people have to care. Truely who else other than us 500,000 (dont rember what the latest "Railfan tally" is), and a few people who use the train on a day in day out basis (what mabey 100,00 a day) care. I mean I see it all the time. Especally in the freight buisness. People just seam to think stuff just magicly appears in there houses. There will never be a level playing field, as long as people dont care. I mean is there anyone out there that any of you know, that is not a railfan, that knows how the lumber for the houses, gets to the work site. How about the Tropicana Orange Juce, for the eastern half of the US? Um mabey they know how the parts and the cars they drive get from the stamping plant to the assembly line, then from the assembly line in Michigan to say Washington State (yes I know we are loosing more of the parts to trucks)? Dose any one you know who isint a railfan that can comprehend the total shut down of this country if we were able to strike like everyone else, with out being forced back to work? How about for two days? Five days? Or god forbid fifteen days? No one cares! Is Amtrak always the fastest, least expensive choice? No not always, but with the avalibality and speed of the car and aircraft it will never have a level playing field. And just because it isint always the fastest or most reliable, dosent mean it shouldent be a option. Like all the people who say Amtrak should dissapear because it is govermant funded, Lets see how long the roads and airlines would last with out goverment help. You think 911 BS hype is bad enough now, how about no security at the airport with out goverment help?
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Unread post by KenB »

Well if the Governmant would FUNDamtrak, a Government company, at the same level as the airline industry (private companys) than we could have a good transsportation system
Amtak should rebuild the line from Porter into Chicago and have its own tracks (old PRR line I think). That would elimate a lot of freight delays.
The State and Amtrak should build more grade seprations between Dearborn and Porter. But we have a short sighted government.
WATCO should keep up the tracks, Amtrak is a paying customer. So NS keeps the rights to service big companies, WHAT big companies are on the line? Between Chelsea and Ypsilanti there are no customers and will likley never be.

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Unread post by RailCanon »

The companies that NS wants access to are GM in Grand Rapids and RSDC Steel in Holt, near Lansing.

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