OAK RIDGE, Tenn. — Watco is looking to grow its portfolio with the acquisition of a 7-mile short line railroad serving Oak Ridge, Tenn.
The short line holding company filed its verified notice of exemption to the Surface Transportation Board on Jan. 8, seeking to acquire and operate 7 miles of rail line and 6.6 miles of rail spur between Blair, Tenn., and Oak Ridge, Tenn., under the company name Smoky Ridge Railroad. The rail line interchanges with Norfolk Southern at Blair.
The railroad is owned by the U.S. Department of Energy. The government granted an easement to the Heritage Railroad Corp., also affiliated with the Southern Appalachia Railway Museum, in 2003 to provide freight rail services. Occasional tourist and private passenger excursions have taken place on the railroad. In 2009, EnergySolutions, a nuclear services company and the line’s primary customer, acquired HRRC’s easement, but HRRC continued switching the facility. EnergySolutions specializes in various nuclear services, including the handling of nuclear waste and disposal.
In 2015, EnergySolutions sought, but did not obtain, the STB’s authority to abandon common carrier freight service and convert the railroad to a private industrial railroad. Now, the nuclear company is looking to transition its easement to Smoky Ridge Railroad, with the filing stating that upon successful receiving the exemption from board review, Watco would obtain common carrier freight rights.
It’s unclear the next steps for the Southern Appalachia Railway Museum and its assets. Notable equipment in its collection includes Louisville & Nashville Alco C420 No. 1315, CSX GE U23B No. 9553, a former Lehigh Valley Alco C420, two former Southern Railway coaches, a Southern baggage car, and Southern dining car No. 3164. Not all assets are on-site at Oak Ridge; some equipment is leased to other preservation groups.
The government-built line was constructed during World War II to serve one of three facilities within the Oak Ridge National Laboratory Complex, which enriched uranium in support of the Manhattan Project that developed the atomic bomb. This line served the former Department of Energy K-25 plant, closed in 1987 and later demolished because of environmental and structural concerns.
— Updated at 8:15 p.m. CT to correct information about Oak Ridge facility served by the rail line. To report news or errors, contact trainsnewswire@firecrown.com.
