GLC gets $17 million loan for locomotives, shop, track

[Rick in TC]

Found this on the GLC web site:

July 15: MICHIGAN RAILROAD RECEIVES 17 MILLION DOLLAR LOAN
(Owosso, Mich. July 12, 2010) Great Lakes Central Railroad together with Federated Railways and Federated Railcars was recently granted a 17 million dollar loan through the Railroad Rehabilitation & Improvement Financing (RRIF) Loan Program managed by the Federal Railroad Administration. The loan proceeds will primarily be used to purchase track equipment and locomotives. It will also be used to rehab existing maintenance facilities and upgrade approximately one mile of Great Lakes Central Railroad (GLC) track to handle 286,000 pound loads for a grain shipper and to retire existing debt from past improvement projects.

GLC is Michigan’s largest regional, and only Class II, railroad, with 400 miles of track stretching through Central and Northern Michigan. Formerly known as Tuscola Saginaw Bay Railway, the railroad was re-named Great Lakes Central Railroad after its purchase by Louis P. Ferris, Jr. in March 2006. The main offices and principal maintenance facilities are located on a 40-acre site in Owosso, Michigan.

GLC provides dependable, integrated transportation benefits to a growing customer base throughout Michigan. Their financial stability has allowed them to retain jobs and create new positions, as well as offer competitive freight rates in conjunction with rail partners throughout North America. The railroad is working closely with the Michigan Department of Transportation (MDOT), Washtenaw and Livingston counties to start a commuter run between Howell/Brighton and Ann Arbor, branded as WALLY.

Great Lakes Central Railroad is dedicated to supporting community goals for transportation efficiencies through its forward thinking and development planning. GLC contributes to a stronger Michigan economy by efficiently serving and supporting its freight customers and future commuter ridership.

For questions, please visit www.glcrailroad.com or contact Mike Bagwell, President and Chief Executive Officer of GLC at (989) 725-6644 x104.

[SD80MAC]

Well this is certainly great news all around. However, I suspect the GP35's days are now numbered.

[AARR]

I was reading on another board that the GP35's are showing their age but still hanging tough (good maintenance program). However, the poster encouraged people to get pictures cause they won't be around forever.

[firemedic54]

Any guessess to what the new engines will be?

[midland sub]

That explains why Railgenerica is drooling over the thoughts of acquiring the GLC.

[AARR]

CEO said at last years AARRH&TA annual meeting they were looking at GP38's. Probably similar to the 2 they have now.

[TC John]

AAAAAAAAAAARR, I was just going to guess GP-38's just like the ones they are leasing. I bet they but the two they are leasing also. Would not take much to make them full GLC paint. I think I should but a few buckets of blue paint and head to Boardman Yard with my paint sprayer and spray/letter one of the cars GLC brought up in a nice GLC paint scheme. All blue, white pinstripping across the side, with a huge GLC logo.

[AARR]

The GP38's are a safe bet but I've only heard some rumors where they might be coming from. I think the current two are leased from GATX or GLTX or something like that. I don't know if they'll buy or lease or whatever future locomotives

[intocable83]

They mentioned upgrading about a mile of track for a grain shipper. Could this be the track to Middleton?

[AARR]

They mentioned upgrading about a mile of track for a grain shipper. Could this be the track to Middleton?

Good possibility. As far as I know track to Oakley is in good shape and although they've done some major rehab to segments to Middleton there's still some bad areas.

But the other problem with rehabbing track to Middleton is how much will MAC ship by rail. For a year or two (or more?) most of their corn was trucked to local ethanol plants which reduced rail shipments by half or more. Recently, rail shipments are approaching there normal levels but for how long? They could rehab more track and MAC could decide to reroute corn to local ethanol plants by truck again.

There have been several occasions where TSBY invested (at their cost) track/facilities for new customer only to have that customer change mind long before TSBY could recoup return on investment.

Another recent example is track to scrap metal yard in Gaylord that was laid (taxpayers expense) a few years ago. To get the track laid carload numbers of 600-750 annually were tossed around. You want to know what the actual number being projected is...240.

[GLC 392]

Jon, as sad is it is to type this the GP35's are on extremely borrowed time right now two GLC employees are down at Paducah KY looking at GP38-2's they are looking for 5.

[TC John]

Well, as I'd hate to see some of the 35's go, it's good to know GLC is able to buy newer, more reliable, and cost efficient (fuel, matainance, parts) power. Now if they could build some more business in TC- at least we have one customer again after 7 months of no trains!

[chapmaja]

I have a couple comments.

First, the posted who mentioned getting the photos of the GP35's while we can is someone with inside knowledge of the GLC, so I would trust he is correct.

Second, if they are looking for 5 GP38-2's right now, that means at least a couple of the 35's likely still would be kept around.

The GLC currently has 385, 389, 390, 391, 392, 393, 394 in operation as I understand it. That is 7 units. I'm not sure the GLC's operations really could replace 7 units with 5 units. I could see 385 and the other repainted units sticking around awhile.

When the economy picks up the GLC might be in need of more power for thier trains. 7 GP38's is not a lot of power for s rail system as spread out as the GLC currently is.

I lot might depend on if TC is still an actively used part of the system. If the TC can get some shipments into and out of TC again, the need for power increases some. If the economy can improve and the demand for sand increases the GLC would need the power.

[TC John]

TC is an active area again to Williamsburg. The facility last owned by the lumber company that went backrupt (Northern Pacific) was purchased last month by another company out of WI. Shipments resumed a few weeks ago. Nothing on the Grawn line though. Seem to be up here enough, as the rails are quite shiny again.

[TCBrent]

GLC 385 just left TC with an empty centerbeam if anyone is interested...
-TC Brent

[MSchwiebert]

The GP35's are pushing 50 after all, and besides the general wear and tear on any machine of that age, the units having the AAR type "B" trucks isn't in their favor either. In many respects it's amazing the lasted as long as they have.

[SD80MAC]

It sounds like 385, 391 and 392 will be sticking around for a while as back up power.

[AARR]

Read on another board GP38-2's may be here by December. 2 GATX untis will depart afterwards. GP35's presently painted in GLC colors will remian active.

All this is subject to change.

[TSB]

*

[BL2-1843]

Have just read, if true, where new GLC locomotives 396 and 399 will be leaving NRE's Paducah Ky plant very soon for Michigan with the other three, 395,397,398 to follow soon after. Said to be in GLC's blue and white colors with a new style block GLC logo on the cab. Time to start watching for these more closer now I guess.