WASHINGTON — Two local shipper groups have dropped their challenge to Canadian National’s proposed sale of former Wisconsin Central branches to short line operator Watco.
Wisconsin Central Group and the Lake States Shippers Association met with Watco’s leadership team last week in Green Bay, Wis., and have decided to support the transaction involving 650 miles of light density trackage in Wisconsin and the Upper Peninsula of Michigan, according to a filing with the Surface Transportation Board.
Watco addressed the shipper groups’ concerns, and CN notified federal regulators that Watco would be subject to the same conditions the STB imposed on CN as part of its 2001 acquisition of regional Wisconsin Central.
“Petitioners are also committed as they have been for many years to working collaboratively with their rail carrier to find mutually agreed solutions, without the need for regulatory intervention, whenever it is possible to do so,” John Duncan Varda, a lawyer for the shipper groups, wrote to federal regulators on Friday. “Petitioners, therefore, support the Applications and commit themselves to working collaboratively with CN/WC and Watco on successful implementation of the transaction.”
Earlier this month CN and Watco sought to have their deal considered exempt from review by the STB, which is the typical practice for Class I lines that are spun off to short line operators. But the Wisconsin Central Group and the Lake States Shippers Association asked federal regulators to consider the sale a “significant” transaction that would require board review.
The sale of the former WC branches to Watco has broad support from a major shipper group, current shippers, railroad associations in Wisconsin and Michigan, a county economic development agency, and the Badger State’s largest business group. [See “Support grows for Watco purchase …,” Trains News Wire, April 16, 2021].
Rail labor groups, including the American Train Dispatchers Association and the SMART Transportation Division, however, have notified federal regulators that they plan to participate in proceedings regarding the transaction.
Watco hopes to begin operating the former WC lines on June 30.
Three cheers for WATCO for reaching out and building bridges here. Apparently the shippers groups were impressed. Indeed, there is a lot to be impressed with about WATCO.