By Randall Davidson

Herald contributor

The federal Surface Transportation Board has authorized the transfer of more than 600 miles of railroad routes in Wisconsin and Michigan from Canadian National to Watco, a holding company that operates more than 40 regional and shortline railroads nationwide.

Watco operates the Wisconsin and Southern Railroad, which serves the industrial park on Oshkosh’s southwest side. Watco also owns the transload terminal there, allowing area businesses to ship by rail.

The Wisconsin lines being transferred to Watco were part of the regional Wisconsin Central Limited, which began service in 1987 on former Soo Line and Milwaukee Road lines. In 1993, it added some lines originally owned by the Chicago and Northwestern and the Green Bay and Western. In 2001, WCL was purchased by Canadian National and is operated as a subsidiary.

The lines in Wisconsin will be operated by a new Watco railroad, the Fox Valley and Lake Superior. Once in operation, the railroad plans to immediately transfer operations on three segments to Wisconsin and Southern. The segments are Fond du Lac to Eden (7.34 miles), Granville to West Bend (14.92 miles) and North Milwaukee to Saukville (19.62 miles).

Among the segments going to the new Fox Valley and Lake Superior in northeastern Wisconsin are three lines radiating from Appleton: one to Black Creek and Shawano, one to New London and Manawa and one via the Appleton industrial “flats” to Kaukauna. The new railroad will take over operation of the rail yard in Appleton and will also service two branch lines out of Green Bay.

Some of the transferred lines in far northern Wisconsin have not seen regular train service for several years. Watco officials say they are working to identify local shippers who would ship by rail before performing the necessary work to restore service on these lines.

The transfer was initially delayed after some shipper groups raised concerns about rates and reliability of service as well as the lack of rail competition, particularly in northern Wisconsin.

The new operations are scheduled to get underway this year.