Indiana Northeastern Railroad: Route, Roster, History

Published: January 15, 2025

The Indiana Northeastern Railroad (reporting mark, IN) is a short line operating 130 miles of ex-New York Central/Lake Shore & Michigan Southern (LS&MS) and Wabash trackage in Indiana, Michigan, and Ohio.

The privately owned independent has been serving the region since December, 1992. By 2017, it was transporting over 7,000 carloads annually.

The railroad's traffic base includes a variety of products such as corn, soybeans, wheat, and flour, in addition to plastics, fiberboard, aluminum, copper, and coal. It also carries perlite, stone, lumber, glass, and rendering products, along with agricultural fertilizers and chemicals.

The system plays a crucial role in connecting rural communities and industries to the national rail network, facilitating economic growth and offering logistical solutions in a strategically important area of the United States.

Indiana Northeastern GP7 #1602 and GP30 #2230 lead an eastbound freight that is about to enter Montpelier, Ohio and the NS interchange on September 27, 2024. Doug Kroll photo.

Historical Context

The Indiana Northeastern was founded in 1992, acquiring secondary branch lines that likely otherwise would have been abandoned.

It consolidated mostly former New York Central/Penn Central between Batavia/Litchfield, Michigan and Steubenville, Indiana as well as the ex-Wabash (4th District)/Norfolk & Western/Norfolk Southern between Montpelier, Ohio and South Milford, Indiana.

When Penn Central announced it would cease rail operations, leaving 200 miles of track in Michigan abandoned, the state intervened by establishing a subsidy program to sustain rail service on sections of Michigan trackage that Conrail would not acquire.

Thanks to these subsidies, the Hillsdale County Railway Company (HCRC) was formed on January 27, 1976, and began service on April 1, 1976, operating on the former Penn Central routes in Hillsdale County, extending west to Quincy and south to Stubenville.

Initially, the company managed routes covering approximately 60 miles and secured several first-generation EMDs. This setup allowed the railway to interchange traffic with Conrail in Quincy and with the Norfolk & Western in Stubenville.

By the mid-1980s, Conrail looked to abandon additional less profitable lines, including the former LS&MS "Old Road" stretching from Quincy to White Pigeon, Michigan. Concurrently, N&W was phasing out its Gary District between Montpelier, Ohio, and Gary, Indiana.

Facing the risk of losing crucial rail interchanges, HCRC expanded its reach by operating a three-mile section of underused track linking Pleasant Lake to Stubenville, Indiana.

In April 1986, HCRC acquired nearly 25 miles of track from N&W, running from Ashley, Indiana, through Stubenville, to an interchange with N&W's Detroit - Fort Wayne line near Montpelier, Ohio.

In 1989, the non-profit Branch and St Joseph County County Rail Users Association (RUA) emerged, formed by the city of Coldwater alongside local business stakeholders, to purchase a 30-mile stretch from Quincy to Sturgis from Conrail.

RUA contracted HCRC to manage and maintain over 10 miles of the track between Quincy and Coldwater, while a new short line railroad, Michigan Southern Railroad, was tasked with operations from Coldwater to Sturgis.

Creation

By the early 1990s, the Hillsdale County Railway was struggling; its tracks were plagued with 10 mph slow orders due to deferred maintenance, which also lead to frequent derailments.

Things took a turn for worse in 1992 when a 50-car train moving east from South Milford derailed near Hamilton, Indiana. This mishap set back the South Milford Grain Company $30,000. Worried the short line may shutter operations, the grain elevator's owners decided to take on the railroad's $1 million debt and consequently acquired it.

They then established the Indiana Northeastern Railroad Company, assuming control over HCRC and the Pigeon River Railroad on December 22, 1992. The new short line immediately set out to rehabilitate the tracks, putting $3 million into improvements over the first two years.

By 1994, they successfully won back customers who had switched to trucks, and by 1996, they were transporting 3,400 carloads annually, including goods like grain, flour, sugar, food products, fertilizer, and plastics.

Since its inception, Indiana Northeastern has consistently invested substantial amounts to enhance its infrastructure—upgrading the roadbed, rails, bridges, and grade crossings—to allow for heavier and faster-moving trains.

Diesel Roster

Road Number	Model Type	Builder	Serial Number	Completion Date	Notes
47	GP7	EMD	16205	4/1952	ex-Pigeon River Railroad 47; ex-GTW 6047; built as Detroit & Toledo Shore Line 47
1073	GP10	EMD	20805	1/1956	ex-Indiana Boxcar 1073; ex-MidSouth Rail 1073; ex-Great Smoky Mountains Railroad 8215; ex-IC GP10 8167; built as IC GP9 9167
1601	GP7	EMD	16905	8/1952	ex-Hillsdale County Railway 1601; ex- St. Johnsbury & Lamoille County 606; built as Reading 606
1602 (1st)	GP7	EMD	18414	5/1953	ex-Hillsdale County Railway 1602; ex- St. Johnsbury & Lamoille County 2614; built as Reading 614
1602 (2nd)	GP9	EMD	22473	4/1957	ex-BN 1766; built as GN 693
1770	GP9	EMD	22477	4/1957	ex-Hillsdale County Railway 1770; ex-BN 1770; built as GN 697
2185	GP30	EMD	27132	7/1962	ex-LTEX 2185; ex-Conrail 2185; ex-Reading 3617; built as Reading 5517
2216	GP7u	EMD	16390	8/1952	ex-Walkersville Southern 1500; ex-AT&SF 2216; built as AT&SF GP7 2216
2230	GP30	EMD	28138	4/1963	ex-LTEX 2230; ex-Conrail 2230; ex-PC 2230; built as PRR 2230
3067	SD40-2	EMD	31278	1/1966	ex-Lake State Railway 6303; ex-CITX 3067; built as C&NW 882
3074	SD40-2	EMD	31274	1/1966	ex-Lake State Railway 6304; ex-CITX 3074; built as C&NW 878
3084	SD40-2M	GMDD	A2160	12/1966	ex-Motive Power Resource (MVPX) 3084; ex-Alstom Canada (GCFX) 3084; built as CP 5527
3125	SD40M-2	EMD	32022	9/1969	ex-Motive Power Resource (MVPX) 3125; ex-CEFX 3125; ex-SP 7409; built as SP SD45 98831
4216	GP30	EMD	28197	8/1963	Scrapped. ex-CSX 4216; built as C&O 3021
4379	SD70M	EMD	966188-95	5/2001	Transferred to Lake State Railway; built as UP 4379
4670	SD70M	EMD	966188-135	4/2001	Transferred to Lake State Railway; built as UP 4670
5903	GP9	EMD	19524	4/1954	ex-Hillsdale County Railway 1603; ex-CR/PC 7303; built as NYC/Cleveland Union Terminal 5903

Indiana Northeastern SD40-2 #3084 and SD45m #3125 are westbound at Edon, Ohio with an empty unit grain train ready for online loading on September 27, 2024. Doug Kroll photo.

Present Day

The strategy of the Indiana Northeastern Railroad revolves around customer-centric values. Its nimble and responsive approach allows the railroad to offer tailored logistics solutions that cater to specific customer needs. This attention to detail and customer relationship management is pivotal in ensuring continued patronage and the growth of its client base.

Furthermore, the railroad places a strong emphasis on community engagement and sustainability. It participates actively in promoting regional development initiatives and supporting local economies.

The Indiana Northeastern exemplifies the importance of short-line railroads in the American transportation landscape. By offering cost-effective, reliable freight solutions and fostering regional economic growth, it serves as a vital link in connecting the Midwest to the national rail network.

Its focus on customer service, community involvement, and sustainable practices has steered it toward success while cementing its role as an indispensable partner to local industries.