A Kansas equity company is buying Michigan's Great Lakes Central Railroad. What we know

Yahoo

08-03-2025

A Pittsburg, Kansas-based railroad equity company this week announced it has agreed to purchase a mid-Michigan regional hauler that runs from Ann Arbor to northern Michigan.
Watco Railroad Company Holdings announced on Thursday that it has reached an agreement to purchase Great Lakes Central Railroad, "the largest Class III regional railroad in Michigan with approximately 400 miles of track stretching through central and northern Michigan."
"We are committed to honoring the history of the GLC and building upon our strong partnership with the Michigan Department of Transportation and our valued customers,' Watco CEO Dan Smith said.
The agreement will enhance Watco's presence in the state of Michigan, the company said, complementing services provided by Watco's Grand Elk and Ann Arbor railroads.
Watco did not disclose the purchase price in the press release or say when the transfer of ownership would take place. It said line operations will begin pending approval by the Surface Transportation Board, which has jurisdiction over railroad rate, practice, and service issues and rail restructuring transactions, including mergers, line sales, line construction, and line abandonments.
Here's what we know about the deal.
Watco calls itself a "full-service supply chain solutions company."
"We provide rail, transloading, terminal and port, and logistics services. Our privately owned company, headquartered in Pittsburg, Kansas, has nearly 5,000 team members and has been recognized by Forbes and Newsweek for our outstanding culture," the company website says.
Watco was founded in 1983 and now owns and operates a network of short line railroads, terminals, and ports throughout North America and Australia.
The company operates 62 railroad companies, including Grand Elk Railroad and Ann Arbor Railroad in Michigan.
AAR operates primarily in southeast Michigan from Ann Arbor to Toledo. Grand Elk has about 300 miles of track in southwest Michigan and portions of the Upper Peninsula.
Great Lakes Central Railroad is based in Owosso and its rail lines run north from Ann Arbor to Cadillac, with branches to Thompsonville, Traverse City, and Petoskey, Watco said in the release.
'The Great Lakes Central Railroad has been a vital part of Michigan's transportation network and both my father, Louis P. Ferris Jr., and I have been deeply passionate about its role in connecting industries and communities,' GLCR President and CEO Jennifer Ferris said in a release. 'With Watco as a longtime partner since 2013, we are confidentthey will honor the legacy we have built while continuing to serve Michigan's industries and communities with the same dedication and excellence.'
GLC covers about 420 miles of track serving 15 Michigan counties, the GLC interchanges with the CSXT, Mid-Michigan Railroad, Huron and Eastern Railway, Canadian National, and Watco's Ann Arbor Railroad, which provides connectivity to Norfolk Southern.
The GLC ships a range of commodities, including soybeans, corn, and other agricultural products, fertilizers, plastics, and LPG. The company says it handles about 48,000 annual shipments and "help(s) our partners transport over 24,000 carloads annually."
The Surface Transportation Board has divided the freight railroads into three categories based on their operating revenue.
According to the American Short Line and Regional Railroad Association, those categories are:
Class I railroads: annual operating revenue over $489.9 million.
Class II railroads: annual operating revenue between $39.2 million and $489.9 million.
Class III railroads: annual operating revenue of less than $39.2 million.
According to the Michigan Department of Transportation, there are 29 railroads operating in Michigan, most of which are small, regional companies. Michigan's rail system has approximately 3,600 miles of rail corridors.
Four of the seven Class I railroads operate in Michigan. The system carries about 17% of all the state's freight tonnage and 21% of the commodities by value.
The system also supports three intercity passenger-rail routes.
"Watco has a long history of working with the Michigan Department of Transportation through its two other short line railroads in Michigan,' said Peter Anastor, MDOT Office of Rail director. 'We look forward to growing our strong partnership with Watco in preserving and enhancing critical rail service in Michigan, while providing excellent service to customers along the state-owned rail corridor between Ann Arbor and northern Michigan."
This article originally appeared on Lansing State Journal: Owosso, Michigan, railroad purchased by Kansas company. What it means