(The following story by Nicole Gerring appeared on the Port Huron Times Herald website on September 20.)
PORT HURON, Mich. — Amtrak has reached an agreement with Michigan Central Railway regarding the operation of rail lines that include a portion of the Blue Water line between Port Huron and Chicago.
Michigan Central Railway, a new company formed by Watco Companies and Norfolk Southern Corporation, has asked the federal Surface Transportation Board to allow it to take control of passenger rail service on lines between Ypsilanti and Kalamazoo, Jackson and Lansing and Grand Rapids and Elkhart, Ind.
The company also would acquire from Norfolk Southern the right to run freight trains on the Amtrak-owned line between Kalamazoo and Porter, Ind.
Amtrak announced Tuesday it had reached a binding agreement with Michigan Central Railway regarding the change in ownership request.
Among other things, the agreement stipulates that during its first three years of ownership, Michigan Central Railway will spend no less than $2.5 million on repair and maintenance. During the fourth and fifth years, the company has agreed to spend at least $2 million on taking care of the lines.
Ed McKechnie, chief commercial officer of Watco, said this month the company would invest far more money than mandated by the agreement – at least $20 million in three years in Michigan operations.
Amtrak spokesman Marc Magliari said the company is confident Michigan Central Railway will make the required and appropriate repairs and upgrades to the lines and maintain satisfactory passenger service.
“We received very binding assurances that would occur,” he said.
In early September, the mayors of cities in central and western Michigan and state officials were concerned Michigan Central Railway had not given Amtrak solid assurances the company would continue to operate and improve the rail lines for passenger service.
Port Huron City Councilman Jim Fisher said he’s glad service will be uninterrupted. He said he wants more tourists to use the train to visit Port Huron.
“I think we’re underutilized with having people come on the return trip from Battle Creek, Kalamazoo,” he said.
“The whole thing with the uncertainty of gasoline and everything else, public transportation/mass transit is really something we need to look at.”
Kirk Steudle, director of the Michigan Department of Transportation, said in a news release that at first there was a concern about the effect of the change on Amtrak’s Wolverine service and the important freight rail line.
The state contributes money to Amtrak operations in Michigan and pays for about 75% of the costs to operate the Blue Water line between Port Huron and Chicago.
“What we have seen instead is a commitment by Michigan Central to work on the issues of safety and track maintenance,” Steudle said in the news release. “We are pleased that Amtrak is satisfied with a strong promise by Michigan Central that conditions along the corridor will be preserved, and even better, could be enhanced with future investment.”