SURFACE TRANSPORTATION BOARD APPROVES MICHIGAN RAIL-LINE ASSETS TRANSFER ENABLING HIGH-SPEED RAIL SERVICE

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>From the Surface Transportation Board, Washington, D.C.
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The Surface Transportation Board announced today that the Michigan
Department of Transportation (MDOT) does not need Board approval to acquire
certain physical assets of a Norfolk Southern Railway Company (NSR) rail
line in Michigan to enable MDOT's plans for high-speed passenger rail
service over the line.


                                        On March 30, 2012, MDOT requested
                                        expedited Board action on its
                                        argument that its proposal to
                                        acquire and make capital
                                        improvements on the NSR line assets
                                        in several counties across southern
                                        Michigan did not require Board
                                        approval because MDOT would not
                                        become a "common carrier" (here, a
                                        freight railroad offering its
                                        transportation services to the
                                        public) as a result of the
                                        transaction.


                                        The request was unopposed, and the
                                        Board agreed with MDOT's position.
                                        This action permits MDOT to execute
                                        its plan to improve the line, so
                                        that Amtrak may run its Wolverine
                                        service at speeds of up to 110-mph
                                        across the line, while NSR
                                        continues to provide freight
                                        service as well.  MDOT received two
                                        High-Speed Intercity Passenger Rail
                                        Program grants from the Federal
                                        Railroad Administration of more
                                        than $346 million for this purpose.


                                        In announcing the Board's decision,
                                        Board Chairman Daniel R. Elliott
                                        III said,

                                        "It's gratifying for the Board to
                                        be part of a project that benefits
                                        so many.  I commend the parties on
                                        working together to make this
                                        venture a reality."


                                        The Board issued its decision in
                                        State of Michigan Department of
                                        Transportation—Acquisition
                                        Exemption—Certain Assets of Norfolk
                                        Southern Railway Company, FD 35606
                                        ( http://www.stb.dot.gov/decisions/readingroom.nsf/WebDecisionID/42320?OpenDocument )

                                        , is available for viewing and
                                        downloading at the Board's website
                                        at www.stb.dot.gov .


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