Printer Friendly

SHIPPERS HEAR PLANS FOR NEW FOX VALLEY RAIL LINE

 SHIPPERS HEAR PLANS FOR NEW FOX VALLEY RAIL LINE


Wisconsin Central president reports "widespread support" for Fox River
 Valley, Green Bay and Western rail purchase
 MILWAUKEE, Jan. 15 /PRNewswire/ -- Wisconsin Central Transportation


Corporation (NASDAQ: WCLX) president Edward Burkhardt said today that the company has found "widespread support" from shippers and public officials for its plan (announced Jan. 8) to purchase the 208-mile Fox River Valley and 277-mile Green Bay and Western railroads from Itel Rail Corporation.
 Speaking to freight shippers and carriers attending a Midwest Shippers Advisory Board meeting in Milwaukee, Burkhardt said a WC subsidiary, Fox Valley & Western Ltd. (FVW), has been established to acquire and operate the lines. "The FVW will have the same management as WC and be able to make traffic, operational and administrative arrangements with WC to the same extent that other independent railroads might."
 Regulatory approval by the Interstate Commerce Commission is expected to take six months, Burkhardt said, and will include a study of transportation competition in WC's service territory. "The brutal fact of rail competition in the 1990s is that we are fighting an uphill battle in what is essentially a trucker's market." During the late 1960s and early 1970s, he said, normal daily paper loading in the Green Bay area was 150 to 200 cars. "Today, 20 cars constitutes a good day. Railroads are virtually out of the sanitary paper business, which is the largest segment of paper traffic in the Neenah-Appleton-Green Bay territory." He said, "To use the word 'monopoly'... is to ignore the revolution in transportation ... and the massive shift from rail to highway transport."
 Burkhardt noted that neither the Fox River Valley Railroad (FRVR) nor Green Bay and Western (GBW) reach any major rail gateways and that combination with WC will eliminate that disability. He also projected "major service improvements for FRVR and GBW shippers."
 Benefits of a combined system include "opportunities to rationalize the route structure by trackage rights and joint-line routings, without reduction or elimination of service of any significance." He noted that WC has sufficient shop capacity to service FVW car and locomotive fleets, and combined administrative functions will result in major savings. A major requirement, he said, "will be to provide and rebuild cars sufficient to provide an excellent car supply to FVW shippers."
 Burkhardt said, "I would like to make clear that I have a lot of respect for the management and employees of FRVR and GBW. These two roads are highly regarded in the transportation community." He said Itel management views sale of the two lines "as necessary to the long- term survival of rail service to their customers and the preservation of jobs for the majority of their employees. We intend to build on their accomplishments, while creating a rail system strong enough to meet the competition of the 1990s and beyond."
 WC has struggled to operate "a very low traffic density system," Burkhardt said, and "times have been much more difficult on the FRVR and GBW." He noted that operating cash flow on the FRVR has been insufficient to service debt and GBW has survived only due to having no debt and an owner "willing to accept a near zero rate of return on its investment. Neither of these railroads is spending nearly enough on capital improvements to maintain their physical plant on a long-term basis."
 Burkhardt said the new railroad intends to improve and increase service to FRVR and GBW customers. "Since its inception in 1987, WC has considered its primary purpose to provide competitive customer service. Keeping faith with this commitment will govern the structuring and operation of the FVW." He said FVW will assume all shippers contracts in effect with the two lines.
 Any abandonments, he said, would be limited to the "no business" type or low volume lines for which there is no hope. "We are long-term players," he said, "and we have never found any route to success in this industry other than by serving and ensuring the competitiveness of our customers."
 -0- 1/15/92
 /CONTACT: Ed Burkhardt, president of Wisconsin Central Transportation, 708-318-4600/
 (WCLX) CO: Wisconsin Central Transportation Corporation ST: Wisconsin IN: TRN SU:


AL -- MN008 -- 0045 01/15/92 13:40 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 15, 1992
Words:700
Previous Article:EXECUTIVE APPOINTMENTS ANNOUNCED AT MOTORS INSURANCE CORPORATION
Next Article:WYLE LABORATORIES INTRODUCES 'FORMULA 4 RESELLER SUCCESS' PROGRAM
Topics:


Related Articles
WISCONSIN CENTRAL SUBSIDIARY TO PURCHASE THREE LINES FROM ITEL RAIL CORPORATION
SANTA FE RAILWAY SELLS RAIL LINES TO TULARE VALLEY RAILROAD
BURLINGTON NORTHERN, SANTA FE FILE MERGER APPLICATION WITH ICC
BURLINGTON NORTHERN, SANTA FE FILE MERGER APPLICATION WITH ICC
UNION PACIFIC/SOUTHERN PACIFIC REBUT CONCERNS ABOUT UP/SP MERGER
SEDA-COG Acquires 49 Miles of Conrail Lines in Central Pennsylvania; New Short Lines Will Operate as Conrail Express Carriers
CSX Files Operating Plan for Integrating Conrail Lines
CSXT Outlines Benefits to Capital Region from Conrail Acquisition
CN and WCTC Welcome United States Surface Transportation Board Ruling.
Pioneer Expands Marketing, Enters Intermodal.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters