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Rail Divestiture

Under legislation enacted in July 1998, MDOT was required to divest four defined rail segments. The objective is to return commercially viable rail operations to the private sector thus minimizing State involvement where it is not necessary to the State's transportation goals. The State pursues divestiture through the competitive bid process. The Bureau will divest each line to the private sector bidder who exhibits the greatest potential for providing continuous, efficient and reliable rail service which, when coupled with an offer of compensation, represents the highest value to the State.

The Bureau successfully completed the sale of the first rail line (Lenawee County Railroad System) in November 2000 and is currently in the process of closing on the sale of the second line (Hillsdale County Rail System). The remaining two segments, the Vassar Area System and the Ann Arbor and Northwest Michigan System will be offered at a later date.

View Rail Divestiture History

For additional information please contact:
Melvin Williams, Administrator, FS&SD
(517) 335-2582
E-mail williamsm@michigan.gov

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