Jobs and the Economy

LANSING – State Representatives Barb Byrum (D-Onondaga), Michael G. Sak (D-Grand Rapids) and Robert Dean (D-Grand Rapids) today joined local business leaders at press conferences across the state to express concerns about the imminent transfer of the Norfolk Southern railroad lines along the Detroit-Chicago corridor to Watco Companies. House Democrats called on Watco to protect this vital economic corridor, which is crucial to Michigan's economic turnaround, adding that the terms on the transfer must uphold the current standards of safety and maintenance, and to continue to give tourists the opportunity to visit Michigan via Amtrak's Wolverine line.
    "Traffic on Michigan's rail lines has increased over the past two years," said Byrum, who sponsored House Resolution 96, which opposed the proposed sale of the Norfolk Southern rail line between Lansing and Jackson. "Emerging companies, such as production plants for ethanol and biodiesel, rely on the Detroit-Chicago rail line. This is the time to do everything we can to move Michigan forward, not the time to cut investment in this vital economic corridor."
    Norfolk Southern is a Class One railroad operator, earning profits in excess of $250 million annually. As a Class One operator, Norfolk Southern has the capacity to maintain and promote the use of these lines. Watco is a Class Three operator, with earnings of $20 million or less annually. The Michigan Department of Transportation says Class Three operators are typically far less likely to have the means to maintain the line, resulting in slower speeds, lighter loads and an increased chance of accidents. In addition, Class Three operators also rely on federal grants for line and equipment maintenance – grants that are not guaranteed.
    "Our railroads play an integral role in moving products and supplies to our businesses,"
Sak said. "Railroads are vital links between Michigan cities and between Michigan and neighboring states."
    "Rail service is a vital link to the economic well-being of Michigan and the good-paying jobs that that the railroad provides," Dean said. "My concern is that a Class Three railroad operator will not have the resources to maintain the track to the standards of the past, and that will hurt business in Grand Rapids and across the state."