New tourist rail operation to launch in New York’s Finger Lakes region
EGA $4B aluminum project bringing thousands of jobs to Oklahoma (Verdigris Southern Railroad)
Mt. Rainier Scenic soldiers on after devastating fire
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Business and romance might not mix, but business can be like romance when it comes to attracting and keeping customers long term. For ASLRRA member Lake State Railway (LSRC), this was especially true in its work to develop a dormant transload facility and convince businesses to convert from truck to rail. Keeping potential customers engaged and interested throughout the entire project, essentially from the first date until the wedding – and beyond – was one of the biggest challenges for the LSRC team.
LSRC initially leased a segment of mainline railroad from Class I partner CSX in 2019, with the plan to increase carloads significantly over time. Track construction and upgrades have helped LSRC grow business over the past six years, but it was a recent project in Wixom, Michigan that will take the short line’s growth even further.
In 2024, LSRC began work developing a transload facility that had been sitting unused for nearly twenty years. But before any construction could begin, LRSC had to identify potential customers that met certain requirements. Their commodities and volumes had to be conducive to rail and they needed to be in truck lanes where a modal shift to rail would make sense.
Once LSRC determined there was a need for a multi-commodity transload facility, the railroad needed to do more work, securing funding and finding an anchor customer and transload partner before getting to the track rehabilitation and equipment procurement and installation. Through all of this, LSRC had to be sure it nurtured its relationships with its customers, keeping them informed of developments and excited to begin rail shipments.
These efforts paid off for LSRC, which completed the $1.2 million project before the end of the year. The railroad started shipments for three new customers by January 2025, moving a diverse mix of commodities that includes utility poles, bulk liquids, steel, scrap, cement, forest products and chemicals. The expected volume for this year is over 1,000 carloads with the potential for increased growth. And LSRC estimates the conversion of these customers from truck to rail has reduced traffic on Michigan’s highways by over 640,000 truck miles.
Since 2019, LSRC has grown traffic on its CSX-leased rail line by over 900 percent. Starting with 1,298 carloads and reaching 13,012 in 2024, LSRC demonstrates the ability of short lines to leverage their local connections and commitment to customer service in ways that result in numerous benefits. Not only does business grow for small railroads and their Class I partners, communities experience positive economic development and reduction of the negative effects of shipping by truck. It’s a positive relationship that continues to blossom thanks to the devotion of small business railroads like LSRC.
ASLRRA member Lake State Railway Company began serving three new customers in January at its transload facility in Wixom, Michigan. Development of the facility, which moves a variety of commodities including bulk liquids, utility poles and forest products, was a $1.2 million project that LSRC completed at the end of 2024.
The government of Ontario, Canada has released a budget plan that includes a temporary tax credit for short line railroads to support track maintenance and rehabilitation.
The Ontario Shortline Railway Investment Tax Credit will provide a 50 percent refundable corporate income tax credit to qualifying short lines for eligible infrastructure projects. The government estimates that the credit will provide C$23 million in income tax support over the three-year life of the program.
ASLRRA has several members that operate in the Canadian province. In response to the budget announcement, the Railway Association of Canada issued a statement applauding the decision to offer the tax credit.
On May 15, Senator Joni Ernst (R-Iowa) introduced the Lifting Overburdensome Commerce Obstructions and Motives (LOCOMOTIVES) Act, a companion bill to the corresponding House version that would amend the Clean Air Act to prohibit states from enacting standards to control locomotive emissions on interstate trains.
ASLRRA supports the bill, which would prevent states from superseding federal standards with their own laws. The bill arose from the California Air Resources Board’s (CARB) efforts to get a waiver from the Environmental Protection Agency (EPA) to implement its In-Use Locomotive Regulation, which would have imposed such burdens on railroads that some California short lines would have been put out of business if forced to comply.
ASLRRA President Chuck Baker is quoted in the press release on the bill issued by Ernst’s office.
"We applaud Senator Ernst’s leadership in introducing legislation that would prevent the possibility of unworkable and infeasible state regulation of locomotives involved in interstate commerce,” said Baker.
Congressmen John Moolenaar (R-Mich.), Jay Obernolte (R-Calif.), and Craig Goldman (R-Texas) first introduced the LOCOMOTIVES Act in the House on May 5.
Today, the Senate Committee on Commerce, Science and Transportation favorably reported David Fink to be administrator of the Federal Railroad Administration. Fink passed on a 15 to 13 party-line vote.
The Senate committee also favorably reported Robert Gleason to be director of the Amtrak Board of Directors. Both nominations will now go to the full Senate for consideration.
Although the list of co-sponsors supporting the short line tax credit modernization act is growing, ASLRRA urges its members and other industry stakeholders to continue to reach out to lawmakers on both sides of the aisle, encouraging them to support the bill.
The House bill, H.R. 516, currently has 72 cosponsors, while the Senate bill, S. 1532, has nine. Both bills have bipartisan support. Many of these elected officials have signed on as a result of visits to their offices on Railroad Day on Capitol Hill on May 7.
The Railroad Track Maintenance Credit, commonly known as the 45G tax credit referring to its section in the U.S. tax code, has been a powerful incentive for short lines to put more of their own funds to work upgrading track and bridges to modern standards, driving $8 billion in infrastructure investment since its inception.
The bills would modernize the tax credit, increasing the cap per mile to $6100, representative of today’s costs, and allowing for the credit to be indexed to inflation going forward. In addition, all short line track as of 2024 would be eligible for the credit.
Individuals can download and share the Association’s 45G policy paper, which outlines the many proven benefits of the credit and underscores its importance. Those whose elected officials have already signed on to the bill can contact those offices to thank them for their support. For more information on the issue, visit our website, or contact ASLRRA’s Crystal Gitchell with any questions about these efforts.
What are the latest ways Association members can engage with ASLRRA? What is ASLRRA’s most recent call-to-action? Below are some of the different types of information the Association would love to gather.
Wi-Tronix, one of the newest Preferred Providers in ASLRRA’s Member Discount Program, offers valuable products and services to Association members.
Wi-Tronix provides digital onboard solutions. Short line railroads can use the company’s Violet Edge system to operate locomotives smarter, safer and more efficiently. The Violet Edge solution includes locomotive installed hardware with options for adding video and compliance tracking.
Violet 830 hardware provides real-time locomotive tracking capabilities along with live monitoring of fuel usage and excess idle reporting. The Violet 800 series hardware includes all the functions of the Violet 830 and is also an FRA-approved event recorder (ER), digital video recorder (DVR), and PTC recorder.
For more on Wi-Tronix and a full listing of products available, members can login and click here. To join ASLRRA’s Member Discount Program, contact ASLRRA’s Senior Vice President, Education and Business Services Sabrina Waiss.
It is not too late to secure one of the few remaining spots in the FRA Locomotive and Car Compliance (Part 215) Training Seminar being held June 3 to 5 in Waterloo, Iowa.
Experts from ASLRRA, Iowa Northern Railway Company and the Federal Railroad Administration (FRA) will provide attendees with classroom instruction and hands-on field training, reviewing CFR Parts 215, 229 and 232 from a mechanical employee’s perspective, discussing common defects found throughout the industry and recommending actions for compliance. Attendees will have an opportunity to engage in open discussions with colleagues and instructors who will answer questions and remove any confusion regarding compliance.
Other training seminars will take place throughout the summer and into October. Go to ASLRRA’s Training Seminar webpage to view upcoming events.
In order to help employees of small railroads attend these seminars, ASLRRA offers two scholarships, the Doug Golden Scholarship and the Jake Jacobson Memorial Scholarship.
Doug Golden Scholarships award up to $1,200 to help cover registration, travel and lodging fees for industry-specific training, while the Jake Jacobson Memorial Scholarship awards $500 to cover registration for an ASLRRA training seminar. Use the links above to apply for a scholarship online.
The Public Utilities Commission of Ohio (PUCO) has authorized over $1.2 million in funding for rail crossing safety upgrades. Three ASLRRA members will each make improvements to a crossing on their respective lines, benefiting communities in three Ohio counties.
Chicago Fort Wayne & Eastern Railroad will receive $307,173 to install flashing lights and gates at a grade crossing in the village of Kirby. Indiana & Ohio Railway Company will receive $420,315 to install flashing lights and gates with surface reconstruction at a crossing in the city of Washington Courthouse, and Belpre Industrial Parkersburg Railroad will receive $509,506 to install flashing lights and gates at the Pomeroy Pike grade crossing in the city of Belpre.
Mike Ogborn attended the 2025 Mid-States Highway-Railroad Safety Conference in Kansas City, Missouri, to provide attendees with an update on ASLRRA. Over 200 regulatory representatives from Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, and Wisconsin attended the event, where Ogborn discussed the short line industry and its current challenges and opportunities.
Recently, Ogborn was also reappointed to Colorado’s Rail Industry Safety Advisory Committee as the short line representative. The committee advises the Colorado Public Utilities Commission on proposed rulemakings concerning railroad operation and safety regulations.
Several ASLRRA team members traveled to Indianapolis, Indiana for Railway Interchange, a railway conference and exhibition presented by industry organizations the Railway Supply Institute (RSI), the Railway Engineering-Maintenance Suppliers Association (REMSA), and Railway Systems Suppliers, Inc. (RSSI). JR Gelnar was in attendance, while Danialle Lovik and Amy Westerman staffed an ASLRRA booth in the exhibition hall. Jo Strang gave a presentation on short lines and long trains at the annual meeting of the International Association of Railway Operating Officers (IAROO), which was held at Railway Interchange.
Chuck Baker was in Montreal today for CN’s 2025 Short Line Conference. The meeting included presentations from CN representatives and an evening networking reception.
Baker also sat down for a discussion of freight rail advocacy and the short line industry with Byron Porter of The Pacific podcast. Baker talked about a variety of issues including Railroad Day on Capitol Hill, petitioning the government and growth in the short line industry.
Experts in various rail industry legal issues have presented several webinars. Recordings of those webinars are available at any time to ASLRRA members. Look for the following titles in the Association’s On-Demand Webinar Library:
Visit ASLRRA’s webinar homepage and log in to view all the on-demand offerings in the Association’s webinar library.
The Short Line Safety Institute (SLSI) has published its May Hazmat Tip, providing an overview of HMG-127 one-time movement approval (OTMA) procedures. The Federal Railroad Administration (FRA) recently issued updates to the hazardous materials guidance on this topic.
The FRA has the authority to issue an OTMA for bulk packages/packaging that no longer conform to the Hazardous Materials Regulations (HMR; Title 49 Code of Federal Regulations (CFR) Parts 171-180). SLSI’s Hazmat Tip provides an overview of the OTMA process and the three different OTMA categories, including a description of what packages/packaging or railcars fall in each category and how to get FRA approval for movement. Click here to view the Hazmat Tip.
SLSI publishes Safety Tips and Hazmat Tips for railroads to help them meet their safety communication needs. They are just some of the many online and in-person resources SLSI offers. For more information, visit the SLSI website at shortlinesafety.org.
Click here for a calendar of industry events.
Views & News is published by American Short Line and Regional Railroad Association.
Please contact Mariel Takamura, associate editor, with questions or comments.
