New Shortline on former E&W/NKP

[MQT1223]

Looks like the former Pioneer operated Elkhart and Western gave up on a portion of the former NKP from Rochester to Argos. The new operators are calling themselves the Rochester and Erie Railway, and will operate the former NKP and Erie remnants up to Argos, but I'm not sure where the E&W ends and the R&E begins. Sounds like lack of business and track conditions were the reasons why the E&W gave up on operating this portion. Pretty sure all of the customer base is located in and around Rochester, so there's just empty mainline from Argos down.

Looks like they started out their first couple of shipments with a large trackmobile believe it or not but quickly wised up and now lease a GP15-1.

Does NS still own this segment of the NKP or is there a group who controls who operates this corridor? I was under the impression that the sections the South Shore and Pioneer operated were simply leased while the one OOS segment from Dillion to Walkerton just sat not used (condemned bridge south of Dillon).

[justalurker66]

From the Federal Register:

Rochester & Erie Railway, LLC (RERY), a noncarrier, has filed a verified notice of exemption pursuant to 49 CFR 1150.31 to operate 11.7 miles of rail line between milepost I-108.6 near Argos and milepost I-96.9 at Rochester, in Marshall and Fulton Counties, Ind. (the Line). The Line includes a short stub-ended spur extending west from approximately milepost 98.1 and terminating at U.S. Route 31.

The verified notice states that the Line is owned by Fulton County, LLC, d/b/a Fulton County Railroad (FCRR), a Class III carrier, and local service has been provided on the Line by Elkhart & Western Railroad Company (EWR) under a local trackage rights agreement. According to the verified notice, that local trackage rights agreement has expired and RERY is entering into an agreement to operate the following on behalf of FCRR: (1) the Line; and (2) FCRR's incidental trackage rights over Norfolk Southern Railway Company's (NSR) tracks between milepost I-108.6 and NSR's Argos Yard, a distance of 1.1 miles. RERY states that EWR has advised the shippers on the Line that it will no longer provide service.[1]

This transaction is related to a concurrently filed verified notice of exemption in Grube—Continuance in Control Exemption—Rochester & Erie Railway, Docket No. FD 36684, in which the Jason W. Grube seeks to continue in control of RERY upon RERY's becoming a Class III rail carrier.

RERY certifies that its projected revenues as a result of the transaction will not result in the creation of a Class II or Class I rail carrier. The verified notice states that, upon commencement of operations under the operating agreement, RERY will be a Class III rail carrier. RERY also certifies that FCRR is not subject to any interchange commitments and the new operating agreement will not impose or include an interchange commitment.

The transaction may be consummated on or after April 21, 2023, the effective date of the exemption (30 days after the verified notice was filed).

If the verified notice contains false or misleading information, the exemption is void ab initio. Petitions to revoke the exemption under 49 U.S.C. 10502(d) may be filed at any time. The filing of a petition to revoke will not automatically stay the effectiveness of the exemption. Petitions for stay must be filed no later than April 14, 2023 (at least seven days before the exemption becomes effective).

All pleadings, referring to Docket No. FD 36671, must be filed with the Surface Transportation Board either via e-filing on the Board's website or in writing addressed to 395 E Street SW, Washington, DC 20423–0001. In addition, a copy of each pleading must be served on RERY's representative, Eric M. Hocky, Clark Hill PLC, Two Commerce Square, 2001 Market Street, Suite 2620, Philadelphia, PA 19103.

According to RERY, this action is categorically excluded from environmental review under 49 CFR 1105.6(c) and from historic preservation reporting requirements under 49 CFR 1105.8(b).

[justalurker66]

I was under the impression that the sections the South Shore and Pioneer operated were simply leased while the one OOS segment from Dillion to Walkerton just sat not used (condemned bridge south of Dillon).

The South Shore owns the track from the end of track south of Dillon to the north and into Kingsbury Industrial Park.

Pioneer is now Patriot Rail with the Elkhart & Western Railroad page on their website claiming: "The Elkhart and Western Railroad operates across three separate branches: the Argos branch, which extends from Walkerton to Rochester, Indiana; the Elkhart branch located in Elkhart, Indiana; and the Monon branch, which runs from Monticello to Monon in northwest Indiana." An update is needed to their website.

[justalurker66]

E&W's side of the story, from the Federal Register:

According to E&W, until recently, it was the exclusive service provider on the Line, pursuant to a trackage rights agreement (Agreement) with FC. E&W states that the Agreement expired on March 15, 2023, and, on the same day, Patriot Rail Company, LLC, which indirectly controls E&W, embargoed the Line due to unsafe track conditions. E&W notes that FC has a common carrier obligation on the Line as well as a plan for a corporate affiliate, Rochester & Erie Railway, LLC (RERY), to operate the Line, see RERY, Notice of Exemption, Rochester & Erie Ry.—Operation Exemption—Fulton Cnty., LLC, FD 36671. Therefore, according to E&W, RERY will be affiliated with the Line as its operator, and shippers will have access to common carrier service, should FC and RERY determine that operations can be resumed safely.

Sources:
https://www.federalregister.gov/documen ... y-railroad
https://www.federalregister.gov/documen ... rshall-and

[NS3322]

It looks like the railroad is affiliated with Rochester Iron & Metal, which is the largest rail customer in Rochester. I believe the only other customer is Prairie Mills Products. Not sure if Wilson Fertilizer & Grain is actively using rail?

I believe the GP15-1 they are using is LTEX 1434. Although, I have not seen photo proof yet.

[MQT1223]

It looks like the railroad is affiliated with Rochester Iron & Metal, which is the largest rail customer in Rochester. I believe the only other customer is Prairie Mills Products. Not sure if Wilson Fertilizer & Grain is actively using rail?

I believe the GP15-1 they are using is LTEX 1434. Although, I have not seen photo proof yet.

I've seen a poor quality photo of the unit but I couldn't identify it beyond being a GP15-1. It's red with a blue stripe running down the mid-section of the body.

[NS3322]

Facebook photos of the new operation:
https://www.facebook.com/photo.php?fbid ... 574&type=3

[AARR]

The scrap yard in the photo looks like a good source of traffic

Facebook photos of the new operation:
https://www.facebook.com/photo.php?fbid ... 574&type=3

[NS3322]

The scrap yard in the photo looks like a good source of traffic

Facebook photos of the new operation:
https://www.facebook.com/photo.php?fbid ... 574&type=3

I believe they are the main customer, with there potentially being 1-2 other customers in Rochester. Prairie Mills Products and maybe Wilson Fertilizer & Grain.
The scrap yard is also the operator of the new railroad.

[AARR]

Thanks for the additional information

I believe they are the main customer, with there potentially being 1-2 other customers in Rochester. Prairie Mills Products and maybe Wilson Fertilizer & Grain.
The scrap yard is also the operator of the new railroad.

[BnOEngr]

Two of the guys putting it together are a former NS manager and a CN sales guy. I think there was a third principle but can't remember his pedigree. All I'll say is "good luck"...

[MQT1223]

Two of the guys putting it together are a former NS manager and a CN sales guy. I think there was a third principle but can't remember his pedigree. All I'll say is "good luck"...

Get an ambitious group and someone whos good at putting out a sales pitch and even the most decrepit looking line can have a strong customer base in a few years and come back from the dead. The West Michigan Railroad is a great example of that...

[RER1979]

Hi All, great discussion here. We had to use a Shuttle Wagon due to our initial locomotive falling thru and our customers needing to move traffic. We have also upgraded 7 miles to class one installing 5,000 ties. We have also increased carloads by 127% in 9 months.

[AARR]

Congratulations on the carloads increase. Your good service is showing. Does anyone other than the scrap yard use your service?

Hi All, great discussion here. We had to use a Shuttle Wagon due to our initial locomotive falling thru and our customers needing to move traffic. We have also upgraded 7 miles to class one installing 5,000 ties. We have also increased carloads by 127% in 9 months.

[Erroneous Monk]

Hi All, great discussion here. We had to use a Shuttle Wagon due to our initial locomotive falling thru and our customers needing to move traffic. We have also upgraded 7 miles to class one installing 5,000 ties. We have also increased carloads by 127% in 9 months.

Is the Shuttle Wagon permanent replacement power?
127%'s a mighty big improvement, good on ya!

[RER1979]

No, shuttle wagon is not permanent. It was returned as soon as we got our locomotive. Also the scrap yard has no ownership in the RER. The owner of the scrap yard is an equal partner in RER. Prairie Mills is our other customer.

[AARR]

TY

No, shuttle wagon is not permanent. It was returned as soon as we got our locomotive. Also the scrap yard has no ownership in the RER. The owner of the scrap yard is an equal partner in RER. Prairie Mills is our other customer.

[NS3322]

No, shuttle wagon is not permanent. It was returned as soon as we got our locomotive. Also the scrap yard has no ownership in the RER. The owner of the scrap yard is an equal partner in RER. Prairie Mills is our other customer.

Appreciate all of the info! Is the current locomotive LTEX 1434 GP15-1?

[RER1979]

Yes it is

[MQT1223]

No, shuttle wagon is not permanent. It was returned as soon as we got our locomotive. Also the scrap yard has no ownership in the RER. The owner of the scrap yard is an equal partner in RER. Prairie Mills is our other customer.

Do you guys plan to grow service at all and bring in a marketing team to try and increase carloads? Do you have any schedule so that some of us can get photos of you guys in operation or do you run as needed when needed?