Traverse City latest

[Third-Mate96]

The ole GP-35 GLC 392, dashing through the snow to deliver another load of wood to the TC area today.

[James Sofonia]

Nice shots 3rd mate

I suppose this is milk toast to most rail fans but we are lucky to see rail traffic in TC considering we only have one active customer up here. Thanks to GLC for keeping the line open for the next guy that comes along.

[tadman]

DIdn't know TC was a one-customer town. How far north is the second-nearest customer? And what condition is the track in? I remember when MIGN once ran passenger trains to TC as the "Northern Arrow" but from what I recall, they were only run as far south as Cadillac. Not exactly a thriving city from which tourists spring forth to a resort 40 miles north...

[AARR]

There's a customer in Manton that ships wood poles periodically. The natural gas plant south of Kalkaska ships 10-15 car per week of butane.

DIdn't know TC was a one-customer town. How far north is the second-nearest customer? And what condition is the track in? I remember when MIGN once ran passenger trains to TC as the "Northern Arrow" but from what I recall, they were only run as far south as Cadillac. Not exactly a thriving city from which tourists spring forth to a resort 40 miles north...

[MiddleMI]

More to the point, who is the one customer in Traverse City?

[AARR]

Amerhart in Bates (west of Williamsburg). They were getting about 50 cars annually until 2014 when they received 117 carloads of lumber. IDK about 2015 but I've heard it may be more than that.

More to the point, who is the one customer in Traverse City?

[NYCMan]

On a cost-to-serve basis, this sole customer in Traverse City has certainly got to be a loss leader for GLC. Thankfully, the Michigan Department of Transportation kicks in tons of money into GLC's pockets to keep them running. Just look at the millions of bucks MDOT kicked in to GLC so that GLC could buy those scrap METRA cars and paint them pretty!

So, be thankful to the folks at MDOT for keeping GLC profitable. I'd rather see MDOT plant the money into GLC's pockets than fix the moon craters on the freakin' highways.

[tadman]

I could be wrong, but doesn't the state own most of the trackage?

[NYCMan]

Correct, the State of Michigan does own almost all of the GLC trackage. The State subsidizes GLC to keep the line running, since the rail line itself is not profitable. A really, really sweet deal for GLC!

[SD80MAC]

You guys are kind of right in regards to MDOT and GLC but not quite. Everyone seems to think GLC never has to pay a dime in regards to upkeep of the physical plant, which isn't remotely true. The state will come through about every 10 years or so and do a major rehab on the certain sections of track that need attention. Aside from that, GLC pays for any and all other track work, including the TC branch.

[AARR]

When the branch to TC was getting around 50 cars annually GLC would lose money or barely break even during the winter on each carload because they'd have to send a snow plow crew ahead of the train. Now that they're getting more and the winter is milder it's probably a better financially.

You guys are kind of right in regards to MDOT and GLC but not quite. Everyone seems to think GLC never has to pay a dime in regards to upkeep of the physical plant, which isn't remotely true. The state will come through about every 10 years or so and do a major rehab on the certain sections of track that need attention. Aside from that, GLC pays for any and all other track work, including the TC branch.

[tadman]

You guys are kind of right in regards to MDOT and GLC but not quite. Everyone seems to think GLC never has to pay a dime in regards to upkeep of the physical plant, which isn't remotely true. The state will come through about every 10 years or so and do a major rehab on the certain sections of track that need attention. Aside from that, GLC pays for any and all other track work, including the TC branch.

I have to agree. If this were so amazingly profitable, someone would come along and offer big money for the operation. Either a class I would want it back or a shortline holding company would offer a premium. But they don't, because the line has its own challenges as discussed above regarding the snowplow.