The trackage covered under the deal, announced in a regulatory filing posted on Monday, runs from Mount Morris, Mich., near Flint, to Middle River, Mich., near Plymouth. The railroads envision completing the transaction on March 29.
The route connects with Lake State’s existing 300-mile system at Mount Morris. The proposed transaction, which requires the approval of the Surface Transportation Board, will push the Lake State-CSX interchange south to Plymouth.
CSX will retain overhead trackage rights on a portion of the line in Flint between McGrew Yard and the connection with Canadian National’s Grand Trunk line, where CSX has trackage rights between Flint and Port Huron, Mich.
Lake State will provide haulage service for CSX between Flint and Plymouth, and CSX will separately maintain trackage rights between Flint and Middle River that CSX can use in lieu of Lake State haulage.
Lake State will gain interchange with CN at Flint and Holly, Mich.
On Jan. 4 Lake State gave rail labor a 60-day notice about the pending transaction and plans to hire 16 people, including six in train service, six in maintenance-of-way, one track inspector, one mechanic, and two carmen.
Lake State will lease the former Pere Marquette trackage between milepost CC 25.98 at Mount Morris and milepost CC 78.9 at Middle River, a distance of 52.92 miles.
The route was not among those CSX put out to bid last year as it looks to prune its network of low-density lines.
CSX began reviewing 8,000 miles of its network in 2017. The railroad has settled on 4,500 miles of routes it aims to sell or lease, including the 1,325 miles of trackage it has already sold or put out to bid.
Lake State May interchange at Flint with CN, but not at Holly, no connection in place, just a diamond.
So the Detriot & Mackinaw finally get to Detroit, sort of.
Saw this coming awhile ago.. How long before the PH&D is leases out?
This news was “leaked’ a couple of months ago…this is a big gain for Lake State RR. This short line runs a tip-top operation, and has a stellar operating rapport. From the take over of a troubled Detroit Mackinaw RR in the 90’s to a 300 + system today, Lake State has made strides in gaining back former customers to adding new customers that have come on line. Lake State made Railway Age “Short Line of the year’ last spring. It’s track is in excellent shape, and it’s motive power collection is in fantastic shape also. I encourage Trains Magazine to send a news crew to Michigan and do a feature story on this railroad. It will amaze you just how good this company is.