The Surface Transportation Board has approved Watco Holdings Inc.’s request for an exemption to acquire control of the Great Lakes Central Railroad.
Watco, which already controls one Class II and 43 Class III carriers nationwide, will purchase 100% of GLC’s stock from Federated Capital Acquisitions Inc. GLC operates about 379 miles of track in Michigan, most of it owned by the state, though about 33 miles are currently inactive.
The line connects with Watco’s Ann Arbor Railroad near Ann Arbor.
Federal regulators initially deemed Watco’s petition incomplete but granted the exemption after the company filed additional information addressing competitive concerns. The Board imposed a condition requiring Watco to keep GLC’s existing gateways open on competitive terms, ensuring shippers continue to have access to multiple rail connections.
Watco pledged to invest about $3.7 million in GLC infrastructure and argued the transaction will streamline service, expand marketing opportunities and improve efficiency. The Michigan Department of Transportation submitted a letter supporting the acquisition, and no objections were filed.
The Board determined the deal would not harm competition and is consistent with federal transportation policy to minimize regulatory barriers. The exemption is subject to standard labor protections but does not require environmental or historic reporting because operations will remain largely unchanged.
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