(The following story by Nick Schirripa appeared on the Battle Creek Enquirer website on August 30.)
BATTLE CREEK, Mich. — Railroad officials said Wednesday that Amtrak service between Ypsilanti and Kalamazoo is expected to continue after rail ownership changes hands, but some local officials remain skeptical of the passenger service’s future.
The railroad corridor currently is owned by Norfolk, Va.-based Norfolk Southern Corp., but the company is working on a deal to pass ownership and maintenance responsibilities to the smaller Pittsburg, Kan.-based Watco Cos. Inc.
Some skepticism was borne from the first-of-its-kind agreement that will create the Michigan Central Railway LLC, former U.S. Rep. Joe Schwarz, R-Battle Creek, said.
“This deal sounds good, and I give Norfolk Southern and Watco credit for trying to put together a business agreement that will benefit the shippers in this line,” Schwarz said. “It is, however, blazing a new trail as far as passenger rail is concerned.
“There is virtually no other place in the United States where Amtrak runs over short-line railroad.”
Representatives from several communities along the rail line — including Portage, Kalamazoo, Battle Creek, Albion, Marshall, Jackson and Ann Arbor — met Wednesday in Battle Creek with state transportation officials and representatives from Norfolk Southern and Watco. Among them were Schwarz and state Sen. Mark Schauer, D-Bedford Township.
Schwarz said the communities along the east-west rail “need ironclad, bulletproof assurances” that the rail will be maintained to Amtrak standards and “that nothing will happen that is going to endanger the Amtrak service.”
Under the deal, Michigan Central Railway would own and maintain the section of rail from Kalamazoo to Ypsilanti.
The company also would own freight lines between Jackson and Lansing and between Grand Rapids and Elkhart, Ind.
Watco would become the parent company of the newly formed railroad, to be headquartered in Kalamazoo.
The plan already has been submitted to the federal Surface Transportation Board for approval, and Schwarz said the plan needs to contain guarantees that Amtrak service will not be interrupted and the track will be maintained to Amtrak standards.
Ed McKechnie, Watco’s chief commercial officer, said the plan called for service to be continued and said as much as $20 million might be spent in the first three years of operation to maintain or upgrade the tracks, which is more than Norfolk Southern has spent improving those tracks in the past 10 years.
“I want you to know that what you’ve heard here today is backed up in writing,” he said. “Everything Amtrak has asked for, we have said yes. We’re going to live up to the commitment of maintaining this line.”
Because of Watco’s lack of experience with passenger rail, critics contend, there needs to be a solid plan in place that will guarantee Amtrak service will not be interrupted if Watco, or any other company, defaults on the deal.
“What if Watco can’t make it and this becomes a losing proposition for them?” Schwarz said. “This rail has got to be open, it’s got to be running and it’s got to be open and running at Amtrak standards.”
McKechnie said there have been discussions about who would get the railroad if Watco is unable to afford its operation and maintenance, but he was unable to give details Wednesday.
The proposed deal would give Amtrak the ability to maintain the railroad if Watco is unable, McKechnie said, and there even will be a provision that would enable Amtrak to go to federal court and make Watco pay for repairs.