MDOT looks to cut payments on idle rail cars, launch Detroit-Ann Arbor commuter line by 2019

[font size="1"]One of the refurbished commuter railcars on display in Ann Arbor in June 2013. (Ryan Stanton | The Ann Arbor News)[/font]


(MLive) LANSING, MI — The Michigan Department of Transportation is seeking to suspend lease payments on unused rail cars as planning continues on two commuter lines from Detroit to Ann Arbor and Ann Arbor to Howell.

MDOT has spent roughly $11.4 million to lease and upgrade the idle cars since April 2010, according to Office of Rail Director Tim Hoeffner, who said the Great Lakes Central Railroad company is open to modifying the contract.

Under the potential deal, MDOT would forgo lease payments for up to five years, starting September 30. In exchange, GLCR could sublease the cars during that time and keep any revenue for itself.

"This is a contract negotiation that is ongoing between Great Lakes Central and MDOT," said Hoeffner. "We are in no way at a final contract yet ... but it would protect the investment that the state has made in the rail cars." .................(more)

http://www.mlive.com/lansing-news/index.ssf/2015/06/mdot_looks_to_cut_payments_on.html