The U.S. Surface Transportation Board is seeking additional information about Watco’s proposed takeover of the Great Lakes Central Railroad.
In March, Watco announced that it was acquiring Michigan’s Great Lakes Central and expressed hope for a swift approval from the federal regulator. However, the STB is now advising Watco to slow down, asserting that the transaction requires a more thorough review. Great Lakes Central operates approximately 400 miles of track in central and northern Michigan, including parts of the former Pennsylvania, New York Central, Grand Trunk Western, Pere Marquette, and Ann Arbor. Additionally, Great Lakes Central already interchanges with Watco’s Ann Arbor, which appears to be at the core of the STB’s concerns.
In a decision posted on May 30, the board wanted assurances that Watco wasn’t going to divert traffic off of GLC and onto its existing routes, or vice-versa, as a way to save money while damaging service.
“Watco will be directed to supplement its petition with additional evidence and argument explaining why regulation is not needed to protect shoppers from an abuse of market power, given the potential impact on GLC’s interchanges with carriers not owned by Watco,” the board wrote.
The STB has asked Watco to address its concerns before June 20. —Railfan & Railroad Staff