Approval Granted for Watco's Acquisition of Great Lakes Central Railroad by regulatory bodies

Watco's Acquisition of Great Lakes Central Railroad Approved by STB with Conditions

The Surface Transportation Board (STB) has approved Watco's acquisition of the 420-mile Michigan regional Great Lakes Central Railroad (GLC). The decision, effective from September 28, comes after a thorough review process initiated in May.

Watco, an equity investor in the GLC since 2013, filed additional information with the board in June. This information was crucial in the STB's decision-making process.

One condition attached to the deal involves gateways connecting Great Lakes and the Ann Arbor railroads. The condition states that these gateways should be subject to the cooperation of third-party interline partners in facilitating traffic movements via such existing gateways.

Moreover, Watco must keep all currently active GLC and AA gateways open on commercially competitive terms commensurate with future traffic volumes and shipper demand.

In March, Watco sought to have its acquisition of the railroad exempt from Surface Transportation Board review. However, the STB stated it needed more information to determine whether the deal qualifies for an exemption, and a review proceeding was initiated.

Watco serves the third-party Great Lakes Central Railroad through the expansion of the Ann Arbor railway line. The condition is a representation made by Watco to adhere to the terms mentioned.

The STB's approval of Watco's acquisition marks a significant milestone for the company. The acquisition will allow Watco to expand its operations in the region and serve its customers more efficiently.

Watco has been an active player in the railroad industry for many years, and this acquisition is expected to strengthen its position further. The company is known for its commitment to safety, service, and innovation, and this acquisition is a testament to its continued growth and success in the industry.

In conclusion, the STB's approval of Watco's acquisition of the Great Lakes Central Railroad, subject to certain conditions, is a positive development for both Watco and the railroad industry. The condition ensures that third-party interline partners will cooperate in facilitating traffic movements via existing gateways, and Watco has agreed to keep all currently active GLC and AA gateways open on commercially competitive terms. This decision will allow Watco to expand its operations in the region and serve its customers more efficiently, strengthening its position in the railroad industry.

Approval Granted for Watco's Acquisition of Great Lakes Central Railroad by regulatory bodies