INTERSTATE COMMERCE COMMISSION APPROVES WISCONSIN CENTRAL LINE PURCHASES
INTERSTATE COMMERCE COMMISSION APPROVES
WISCONSIN CENTRAL LINE PURCHASES
CHICAGO, Nov. 6 /PRNewswire/ -- Wisconsin Central Ltd. (NASDAQ: WCLX), Rosemont, Ill., said it has received Interstate Commerce Commission approval to purchase two track segments in northern Wisconsin that would permit the 2,000-mile Chicago-based regional railroad to compete for traffic in the Duluth, Minn., to Chicago corridor.
Under an I.C.C. order, effective Nov. 15, 1991, WC plans to acquire the 102-mile Ladysmith to Superior, Wis., line from the Soo Line Railroad Company at a cost of $15.75 million. In a related decision effective Dec. 5, 1991, the Commission also approved WC's plans to purchase the 97-mile line of the Chicago and North Western Transportation Company between Cameron and Superior, Wis., at a cost of $5.8 million. In its decision, the I.C.C. said, "The rail service options available to overhead shippers will increase with a resulting benefit to competition."
Edward Burkhardt, WC's president, said, "We're pleased with the Commission's decision, which will permit us to offer customers a quality service that is more competitive and considerably shorter than the other railroads serving the Duluth-Chicago market."
WC has had operating rights over the Ladysmith line and access to all railroads and industries in the Duluth-Superior terminal since the railroad acquired its track from the Soo Line in October 1987. However, the original sale agreement prohibited WC from handling through traffic to Chicago.
In its application, WC said it ultimately intends to combine the best portions of both routes and upgrade the resultant line, over which WC and the North Western would operate. "This would increase both the volume and level of service on otherwise light-density track in northern Wisconsin," Burkhardt said.
Wisconsin Central Ltd. is a wholly owned subsidiary of Wisconsin Central Transportation Corporation, which is publicly traded on the NASDAQ under the ticker symbol WCLX. The railroad serves Illinois, Wisconsin, Minnesota, Michigan's upper peninsula and Ontario.
/CONTACT: Ed Burkhardt, president, or Tom Power, executive vp, of Wisconsin Central Transportation Corp., 708-318-4600/
(WCLX) CO: Wisconsin Central Transportation Corp. ST: Illinois, Wisconsin, Minnesota IN: TRN SU: AL-JS -- MN010 -- 1787 11/06/91 14:02 EST