Grand Elk RR

[tazer]

Maybe these two railroads realize the dire situation we are in and decided to work together to create real customer service . I for one hope they make it work

MQT and GER have agreed to work closely together to ensure
that the upgrades and improved service on the GER leased line also redound to the benefit of
MQT and the shippers located on MQT's rail lines.
The proposed transaction will improve rail service in the region and will be of
benefit to the ailing Michigan economy.

[AARR]

Sorta sounds like MQT will be able to interchange directly with GER without going through CSX. Am I reading this right?

[hobojim]

Is it GERGRE or is it GREGER

[Ben Higdon]

Regarding Marquette's objections, I don't see it being that worse to have GER operating the NS line. Once the GM plant closes in Grand Rapids, I wouldn't imagine NS doing more than a local turn job between Hughart and Botsford, and a turn between Botsford and Elkhart. This is probably the same operating pattern GER would use, if anything they'd be more likely than NS to have a turn from Hughart straight to Elkhart. Too bad South Yard and Mosel Yard in Kzoo are torn up so they couldn't be used for pick up/set outs, if GER wanted to. I don't know how rates work, but maybe there would be an additional switching charge to have an extra interchange when the traffic reached Elkhart? It would be a real gain in efficiency if CSX could be bypassed in Grand Rapids for a direct MQT/GER connection.

[Raildudes dad]

Talked to a gentleman yesterday that works for the Univar facility (ex ChemCentral) south of 28th Street. He said they just spent some significant $$ to upgrade the unloading equipment so they can................ start receiving rail cars again . Watch for it sometime this spring.

[SD80MAC]

Is that the one you can see from the bridge over 131? Been awhile since I've seen a car in there.

Does anyone know what the customer is just north of 28th st? Small spur track with that looks like some sort of chute above it. Used to see covered hoppers there, but it's been awhile.

[i995impalass]

Jon that would be Country Fresh, plastic cars for making milk jugs

[Raildudes dad]

Jon that would be Country Fresh, plastic cars for making milk jugs

Wouldn't surprise me if RSI delivered the plastic granules from Hughart cheaper than they could truck their own from down the street.

[Typhoon]

Now I

[Raildudes dad]

Now I have to admit that my knowledge of GR railroading is pretty much limited to what I see on my CADS screen, so I have a question. Is there anyway for the Marquette to reach Hugart without going over CSX?

No, the Grand Rapids rail consolidation project of 1985 removed the parallel Pennsy track and gave Conrail? trackage rights on CSX from Watson St to Fuller where they went back on their own tracks. All that is left north of Ann is 2 tracks, the old main and 1 runaround track.

[CAT345C]

Anymore news on what the STB has said about the projected lease?

[Ben Higdon]

Seems like a more far-sighted approval process by the STB would have required CSX allowing interchange between Marquette and NS. Maybe CSX wouldn't have been willing to turn over the Manistee/Ludington line with that stipulation, but without it, it compromises potential growth for the Marquette and the industries it serves. At any rate its still better now than if CSX was still operating the track.

[Raildudes dad]

Anymore news on what the STB has said about the projected lease?

A reliable souce said the STB Supposed to issue the decison by 10:30 - 4 minutes ago.

[Raildudes dad]

Request for stay denied

Decision Notes: DECISION DENIED THE PETITIONS OF THE UNITED TRANSPORTATION UNION AND BROTHERHOOD OF LOCOMOTIVE ENGINEERS AND TRAINMEN/MICHIGAN LEGISLATIVE BOARD TO STAY THE EXEMPTION NOTICED IN THIS DOCKET. ALSO, THIS DECISION ADDRESSED THE COMMENTS FILED BY MICHIGAN STATE SENATOR RAYMOND E. BASHAM.

http://www.stb.dot.gov/decisions/readin ... enDocument

[GP30M4216]

New from MLive.com today:

New railroad plans start-up in West Michigan
by Chris Wheelock
Monday February 02, 2009, 11:58 AM

Amid the spiral of layoffs and downsizing in Michigan, a Kansas transportation company is moving ahead with plans to invest nearly $9 million to take over and operate a rail line between Grand Rapids and Elkhart, Ind., currently operated by Norfolk Southern Railway.

The Grand Elk Railroad, a subsidiary of Watco Transportation Services, was given the green light Jan. 30 by the Surface Transportation Board -- the federal agency with regulatory oversight of the nation's railroads. Despite the pledge of 58 full-time jobs and the prospect of a multimillion dollar infusion into West Michigan's economy, there is opposition to the plan.

"I'm disappointed by the STB decision," state Sen. Ray Basham, D-Taylor, said. "I still have the same concerns I had when I filed my comments, and we'll just have to see where this goes."

Basham, vice chairman of the Senate Transportation Committee, is one of five petitioners to the STB seeking to block the transaction, citing public safety, labor and competitive concerns. The STB was not persuaded.

"This is excellent news," said Rick Webb, CEO of Watco. "Our team is excited to roll up our sleeves and get to work in western Michigan."

Grand Elk Railroad General Manager Rodney Gordon said more than 2,000 people have applied so far for the 57 other positions he'll fill. Employees will undergo training until the planned April 1 start-up date.

Under the plan, Grand Elk will lease and operate nearly 123 miles of rail line from Norfolk Southern, which has let portions of the track deteriorate, limiting train speeds to 10 mph for safety reasons. Grand Elk officials said planned upgrades will allow the railroad to increase train speeds to 25 mph, expediting delivery and lowering costs for customers.

The railroad proposed replacing at least 20,000 ties between Kalamazoo and Grand Rapids and a bridge in Portage and refurbishing two rail yards at an estimated cost of more than $3 million. Grand Elk said it plans to spend an additional $1.2 million on track equipment and machinery and $4 million on locomotives and maintenance.

The company expects to use 10 locomotives to haul 22,000 rail cars of freight -- the equivalent of 60,000 to 80,000 truck loads in its first year, worth an estimated $5 million in revenue, according to the railroad's filing. Gordon said the current economic slowdown means it likely will haul less than initial projections at the start, but he thinks there's a bright future ahead for many of the businesses that ship their products on the line.

General Motors Corp. was the biggest customer on the line. Since GM announced it would shutter its Wyoming stamping plant in 2009, Gordon said it appears production is already ramping down. So Grand Elk will look to agricultural products, raw materials like coal and aggregate, forest products and chemicals to take the lead.

"Several of the customers we have right now are looking for growth within 2009," he said.

Basham remains skeptical Grand Elk Railroad will live up to its promises.

"Yes, hiring people is a plus and investing money in track is a plus. It all sounds good on paper." he said, adding that he will continue to monitor for any delays to Amtrak passenger trains or increases in shipping costs on the line.

Chris Wheelock is a freelance writer in Kalamazoo.

http://www.mlive.com/business/west-mich ... up_in.html

[AARR]

I wonder how many jobs are being lost because of NS leaving

As for the 22,000 cars the 1st year, I hope they do it but I'm finding that railroads estimate high on numbers when they want approval. I can still recall LSRC saying the new line to A&L would generate 600-750 cars a year. Then I read recently they hoped for 240 .

[jwilliam33]

Think we can design a paint scheme on their engines that would incorporate a nice set of Elk horns on the front of the nose?

[AARR]

Think we can design a paint scheme on their engines that would incorporate a nice set of Elk horns on the front of the nose?

. Might as well have fun with the paint scheme because the name, Grand Elk, sounds like a lodge for men named Homer Simpson

[Beal99]

the paint scheme will be basic watco black and yellow boring

[Jeff L]

According to the STB, the Grand Elk RR abbrv. will be lettered GDLK