LANSING -- State Representative Barb Byrum (D-Onondaga) today applauded the federal Surface Transportation Board's decision to deny the transfer of the Norfolk Southern railroad lines along the Jackson-Lansing corridor to Watco Companies, a move that will protect jobs and economic development along the 300 miles of track.
"This railway line is a vital link that our businesses depend on to succeed," said Byrum, who sponsored House Resolution 96, which opposed the proposed sale of the Norfolk Southern rail line between Lansing and Jackson. "As Michigan moves forward into the 21st century, this line will be used by businesses that specialize in emerging industries such as ethanol and biodiesel. If this transfer had gone through, it could have been devastating to companies that will diversify our economy."
Norfolk Southern is a Class One railroad operator, earning profits in excess of $250 million annually. As a Class One operator, Norfolk Southern has the capacity to maintain and promote the use of these lines. Watco is a Class Three operator, with earnings of $20 million or less annually. The Michigan Department of Transportation says Class Three operators are typically far less likely to have the means to maintain the line, resulting in slower speeds, lighter loads and an increased chance of accidents. In addition, Class Three operators also rely on federal grants for line and equipment maintenance – grants that are not guaranteed.
The Surface Transportation Board is an economic regulatory agency designated by Congress to review proposed railroad mergers. It made its decision to reject the transfer on Monday.
"I was concerned that a Class Three railroad operator would not have the resources to ensure that the track is well-maintained, and that would hurt business across the state during these difficult economic times," Byrum said, noting that the line runs through Holt and Mason . "This decision will ensure that this vital link to the economic well-being of Michigan and the good-paying jobs that it provides will be protected."