Author Topic: Michigan Southerns Ohio Operations  (Read 3525 times)

mp 126

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Michigan Southerns Ohio Operations
« on: December 31, 2012, 08:23:37 AM »
Effective 12/28 Pioneer Lines took over the operations on the former MAW property that runs from Woodburn Indiana to Liberty Center OH, former power is sitting awaiting for CSX to pickup. For the time being they are using NS 5555 and came in from Woodburn IN to start clearing the tracks, there were3-4 empty open gons on the ground blocking the main allowing them to get to the Lafarge facility just north of Paulding OH.
Pioneer has kept former employees to continue to operate this line, Pioneer has showed up with 15-20 people to address some of the immediate needs of this line, while most of the people are Pioneer people there is also Contractors on-site as well. They have came with rail, ties, tie bars, and alot of laborers. Hopefully the worse railroad in Ohio had found hope !

http://www.fwarailfan.net/community/viewtopic.php?f=2&t=3153

Prior to the takeover

http://www.fwarailfan.net/community/viewtopic.php?f=2&t=2815

Mike

NS7112

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Re: Michigan Southerns Ohio Operations
« Reply #1 on: December 31, 2012, 09:57:38 AM »
Thanks for sharing!  Always good to hear positive rail news...

LJ

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Re: Michigan Southerns Ohio Operations
« Reply #2 on: January 01, 2013, 06:35:06 PM »
It is nice to see that someone is wiling to fix some of the much needed track work that needed to be done, at the same time I hope no one from the NS see's where or what they are operating the NS's power on!!!!!! ;D

Eel_River

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Re: Michigan Southerns Ohio Operations
« Reply #3 on: January 01, 2013, 07:34:37 PM »
What are the new revenue sources?  If MAW couldn’t survive, how can Pioneer put money into the physical plant and realize profit on the same revenue sources?  Is a significant new customer pending?

k9fon

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Re: Michigan Southerns Ohio Operations
« Reply #4 on: January 01, 2013, 07:55:22 PM »
They are going to need an Army of MOW employees and resources to get the tracks up to snuff!

MSchwiebert

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Re: Michigan Southerns Ohio Operations
« Reply #5 on: January 01, 2013, 08:32:44 PM »
A couple of factors, Pioneer has a much bigger revenue stream, company wide than what the owner of the MAW had, so that's one source. A second potential source would be ORDC (Ohio Rail Development Commission) funds. The MAW had used some funds through this channel before, but for at least a period of time were "frozen out" of consideration due to concerns that the funds were not being used to better the line. Thirdly, the previous ownership operated the line under the "run it into the ground" business model where very little/none of the profits gained were put into the physical plant.
That said, it will take Pioneer a while to (at the very least) stabilize things and then make headway.  To their benefit, the line has good mix of customers, (instead of one dominant one) that are across several business categories.

What are the new revenue sources?  If MAW couldn't survive, how can Pioneer put money into the physical plant and realize profit on the same revenue sources?  Is a significant new customer pending?

Chessie_GW97

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Re: Michigan Southerns Ohio Operations
« Reply #6 on: January 01, 2013, 10:40:08 PM »
Apparently I am readng they have named the operation "Napoleon, Defiance & Western". They probably made it an operating division of the Michigan Southern for startup.

David R.

NS7112

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Re: Michigan Southerns Ohio Operations
« Reply #7 on: January 02, 2013, 10:49:35 AM »
Cool pic I found with NS 5555 on the old MAW a few days ago...

http://www.railpictures.net/viewphoto.php?id=419731&nseq=0

Freightrain

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Re: Michigan Southerns Ohio Operations
« Reply #8 on: January 02, 2013, 01:10:47 PM »
Do they do campbells soup in napolean if it ia in napolean

MSchwiebert

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Re: Michigan Southerns Ohio Operations
« Reply #9 on: January 02, 2013, 03:35:34 PM »
Campbell's has in the past received some product (tomato paste mostly) via rail.  However the plant itself has not had direct rail access since the GTW abandoned the former DT&I "old line" from Malinta to Napoleon in the 1980's.  The product is staged at one of the cold storage facilities across the Maumee River in the Napoleon Industrial park and trucked to the Campbell's plant.  In the DT&I days Campbell's was a key customer for the railroad, but a combination of poor customer service & damaged product during shipment by the GTW as well as end customer (grocery wholesaler) preferences changing to truck caused Campbell's to stop using the Grand Trunk for inbound or outbound products.


Do they do campbells soup in napolean if it ia in napolean

CSX_CO

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Re: Michigan Southerns Ohio Operations
« Reply #10 on: January 02, 2013, 05:14:57 PM »
I've heard Cambells is a big user of the NW Ohio intermodal terminal though.

Practice Safe CSX

Eel_River

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Re: Michigan Southerns Ohio Operations
« Reply #11 on: January 02, 2013, 10:10:32 PM »
Chessie_gw97: I did a business entity search, and it looks like ND&W is the renaming of Michigan Southern and Wabash & Western. 

I ask again: What was the incentive to purchase the line?  Local, state or federal assistance?  A new customer or expansion of an existing customer? 

An investment of this size in a demolished RR is a monstrous investment.  Without assistance, the recovery may be dozens of years, unless they got a good price and intend to scrap the line.

Craig

k9fon

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Re: Michigan Southerns Ohio Operations
« Reply #12 on: January 02, 2013, 10:35:37 PM »
Pioneer scrapped an ex IC line out of Evansville a few years ago that had several grain elevators online.. So who knows what the future holds...........

scraphauler

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Re: Michigan Southerns Ohio Operations
« Reply #13 on: January 02, 2013, 10:47:05 PM »
Pioneer seems to specialize in buying distressed properties at/near liquidation value, then use state or federal money to attempt to rehab some or all of the property.  Sometime it works and they end up with a viable little company.  Other times it fails (like Evansville).  They seem to be the "last chance" for a line, and failure usually results in dismantling.   Track work taking place right now is likely funded by ORDC and was likely lined up as a condition of the sale.
The opinions, views, and incoherent ramblings presented here do not necessarily represent the view point of any company I work for or own,  any logical thinking being, or even me.

scraphauler

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Re: Michigan Southerns Ohio Operations
« Reply #14 on: January 03, 2013, 12:48:43 PM »
Here is a little blurb from today's RT&S's websight

Pioneer Railcorp's wholly-owned subsidiary, Michigan Southern Railroad Company, purchased the rail line formerly known as the Maumee & Western Railroad Corporation (MAW).

The newly acquired line will be operated as the Michigan Southern Railroad Company (MSO). The MSO will operate approximately 51 miles of track from Woodburn, Ind., to Liberty Center, Ohio.

Mike Carr, president and CEO of Pioneer Railcorp, said, "We have purchased this line with the knowledge that it is in dire need of rehabilitation due to years of deferred maintenance. Our objective is to rehabilitate the line in order to provide consistent freight rail service to all current and potential shippers utilizing the line. We also plan to restore two sections of track, from Napoleon to Liberty Center and west of Defiance to Cecil, that would offer all shippers on the line connections to multiple Class 1 carriers for more competitive access to the North American rail system. We intend to explore all options available to complete these objectives as quickly and efficiently as possible."

The opinions, views, and incoherent ramblings presented here do not necessarily represent the view point of any company I work for or own,  any logical thinking being, or even me.

matt76

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Re: Michigan Southerns Ohio Operations
« Reply #15 on: January 03, 2013, 03:29:12 PM »
I'm wondering how many millions it would take to get the line to respectable status. I took a little tour of the line on Tuesday and couldn't believe they were allowed to run trains on that track.Definitely a lot of work for these guys but hopefully they'll do a good job restoring the line.

rrnut282

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Re: Michigan Southerns Ohio Operations
« Reply #16 on: January 03, 2013, 06:33:06 PM »
Railroads don't have to have welded rail, CTC, and be good for 60mph to provide good service.  Good service is delivering the cars when you say you will, consistantly.
rrnut2-8-2
(Mike)

MSchwiebert

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Re: Michigan Southerns Ohio Operations
« Reply #17 on: January 03, 2013, 07:43:35 PM »
Back in 2009 a Tiger Grant request was submitted to rehabilitate the line.  Part of the newspaper article detailing the request is below.

Obviously not all of 95.8 million $ would have been spent on trackwork (there's mention of some being for an enginehouse in Defiance, and if I remember correctly the intent was to use some of the $ for the counties the line passes through to purchase the line from the owner at that time) and the welded rail may have been a bit overkill - but it gives an overview of what was being looked at.

http://www.crescent-news.com/news/article/4670393

By JARED ORZOLEK



The Regional Port Authority of Northwest Ohio is seeking a $95.8 million federal grant that would fund the

rehabilitation of the Maumee and Western Railroad.

The port authority will seek the funds -- slated to improve 51 miles of railroad and return the deteriorating track to full operating capacity -- through the Transportation Investment Generating Economic Recovery (TIGER) program.

The TIGER program is managed by the Federal Highway Administration and is funded through the American Recovery and Reinvestment Act, commonly called the stimulus plan.

"If the federal government is looking for a project that is ready to go, this is one of those projects," said Jerry Hayes, director of Defiance County's economic development office. "If they are looking for a project that will generate economic development, this is one of those projects."

The port authority, which serves Defiance, Henry and Paulding counties, officially applied for the grant Tuesday and should learn by Feb. 17 if funds have been allocated for the project.

The Maumee and Western Railroad travels from Liberty Center in northeast Henry County, through Defiance and Paulding counties and ends in Woodburn, Ind.

According to the port authority's grant application, the railroad tracks' condition deteriorated to the point that only part of the line can be used -- even with weight restrictions in place.

The grant proposal calls for replacing the wood railroad ties with new, larger ones, improving drainage along the railroad, laying continuously welded track and construction of an engine house in Defiance.



I'm wondering how many millions it would take to get the line to respectable status. I took a little tour of the line on Tuesday and couldn't believe they were allowed to run trains on that track.Definitely a lot of work for these guys but hopefully they'll do a good job restoring the line.

bn13814

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Re: Michigan Southerns Ohio Operations
« Reply #18 on: January 04, 2013, 09:46:14 AM »
We also plan to restore two sections of track, from Napoleon to Liberty Center and west of Defiance to Cecil, that would offer all shippers on the line connections to multiple Class 1 carriers for more competitive access to the North American rail system.

So I take this to mean MSO intends to put the CSXT crossing at Defiance back in...or just a restored connection with CSXT for the Woodburn-Defiance section?  (I know this is Ohio, not Indiana, but...)


MSchwiebert

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Re: Michigan Southerns Ohio Operations
« Reply #19 on: January 04, 2013, 10:01:05 AM »
Diamonds at Defiance have been in for several years now.  CSX initially put in  conventional diamonds to comply with the ruling forcing them to put them back in, and then later replaced them with OWLS diamonds.

So I take this to mean MSO intends to put the CSXT crossing at Defiance back in...or just a restored connection with CSXT for the Woodburn-Defiance section?  (I know this is Ohio, not Indiana, but...)

bn13814

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Re: Michigan Southerns Ohio Operations
« Reply #20 on: January 04, 2013, 11:35:58 AM »
Diamonds at Defiance have been in for several years now.  CSX initially put in  conventional diamonds to comply with the ruling forcing them to put them back in, and then later replaced them with OWLS diamonds.

Hmmm. Google aerial photos must be old. :D That's good for the future of the new MSO operation. Pioneer Railcorp has done a good job with the old TP&W West End, so they can make the old MAW work.

mp 126

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Re: Michigan Southerns Ohio Operations
« Reply #21 on: January 05, 2013, 06:41:19 PM »
Saturday's action.. They did push a string of cars west of the diamond.. The Cecil trail had a couple axles on the ground east of Antwerp, Stuffing ties in the yard in Defiance. A Pioneer GP 20 is in service as well as MAW #7 and NS 5555.

http://www.fwarailfan.net/community/viewtopic.php?f=2&t=3153#p16144

Mike

k9fon

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Re: Michigan Southerns Ohio Operations
« Reply #22 on: January 06, 2013, 05:19:45 PM »
Well i hope they install a boatload of ties as the entire railroad looks downtrodden...

Indiana_Shortlines_Fan

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Re: Michigan Southerns Ohio Operations
« Reply #23 on: January 07, 2013, 11:36:06 AM »
I drove down US-24 from Toledo to Ft. Wayne yesterday (Sunday).  I found the NS 5555 with 5 tank cars headed WB, but parked (for the weekend?) at a county road grade crossing two miles west of Cecil.  I would expect that will represent the future operations - just keep running back and forth continuously from Woodburn to Napoleon, and just park the train for the night along the line where the crew outlaws.

Bruce Lyons