WASHINGTON — Federal regulators today gave the green light to Watco’s acquisition of the 420-mile Michigan regional Great Lakes Central Railroad.
Watco has been an equity investor in the GLC since 2013 and in March sought to have its acquisition of the railroad exempt from Surface Transportation Board review, which is common in straightforward shortline railroad deals.
But regulators had questions. In May the STB said it needed more information to determine whether the deal qualifies for an exemption and began a review proceeding.
Today’s STB decision, which will be effective on Sept. 28, was based on additional information Watco filed with the board in June.
The board attached one condition to the deal regarding gateways involving Great Lakes and the Ann Arbor, which Watco also owns.
“Watco must adhere to its representation that it will keep all currently active GLC and AA gateways open on commercially competitive terms commensurate with future traffic volumes and shipper demand and subject to the cooperation of third-party interline partners in facilitating traffic movements via such existing gateways,” the board said.
