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The Watco Cos. Inc. is seeking an exemption from the Surface Transportation Board (STB) to lease track and obtain trackage rights from BNSF Railway Co. in California, and launch a new short line to operate the lines.

Watco would lease from BNSF a 21.2-mile line in the Escondido Subdivision between Oceanside Junction and Escondido, and a 0.3-mile spur, according to a STB filing. The short-line holding company also would obtain incidental trackage rights to provide local service over BNSF's 45.5-mile line in the San Diego Subdivision between a point near San Diego and the San Diego County/Orange County border, including Stuart Mesa Yard.

Watco plans to form Pacific Sun Railroad L.L.C. to operate the lines. Watco currently owns 18 short lines operating in 15 states.