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Last week, the Surface Transportation Board approved the Watco Cos. Inc.’s plan to lease track from Norfolk Southern Corp. in Michigan and Indiana and form the Grand Elk Railroad L.L.C. to serve as the line’s operator.

Watco — which owns 19 short lines operating in 16 states — will lease 122.9 miles of NS track between Grand Rapids, Mich., and Elkhart, Ind. The Grand Elk Railroad, which will be based in Kalamazoo, Mich., will launch operations on April 1.

Watco named Rodney Gordon general manager of the new short line and Shasta Stump, vice president of sales. Gordon previously served Canadian National Railway Co. in various capacities and Stump has led sales and marketing efforts for Watco railroads in Kansas and Oklahoma.

The Grand Elk Railroad will serve more than 55 shippers in the two states. Watco projects annual carloads at 22,000, including automotive parts, plastics, metals, lumber and wood products, and aggregates traffic.

The Grand Elk Railroad will operate three yards in Grand Rapids, Kalamazoo and Wyoming, Mich. The short line will interchange with NS in Kalamazoo and Elkhart; CN in Kalamazoo; and CSX Transportation in Grand Rapids. Grand Elk also will interchange with short lines Marquette Rail L.L.C., Mid-Michigan Railroad, Grand Rapids Eastern Railroad and Michigan Southern Railroad.

Watco plans to upgrade portions of the line between Elkhart and Grand Rapids to increase train speed from 10 mph to 25 mph.