DDRR Modifies Lease, Trackage Rights Agreements

The Dover & Delaware River Railroad (DDRR) runs on more than 100 miles of Norfolk Southern (NS) lines and via trackage rights over New Jersey Transit. Working closely with sister railroad Dover & Rockaway River Railroad, it serves freight shippers across New Jersey.

Dover & Delaware River Railroad (DDRR) has filed a verified notice of exemption under 49 CFR 1150.41 to amend its existing lease with Norfolk Southern (NS) and existing trackage rights agreement with NS and New Jersey Transit that will allow continued operation over 107.9 miles of rail line in New Jersey.

DDRR, a Class III subsidiary of Chesapeake and Delaware, was established in 2019 and interchanges with NS at Phillipsburg, N.J. (see map above). Working closely with sister company Dover & Rockaway River Railroad, it serves freight shippers across New Jersey.

“Under the amended agreements, a 0.75-mile segment of line that is subject to the current trackage rights agreement will become subject to the amended lease agreement instead,” according to the Surface Transportation Board’s June 16 notice in the Federal Register (download below). “The amended lease will also revise other commercial terms.”

Under the amended lease agreement with NS, DDRR will continue leasing the Washington Secondary (between milepost WD 58.0 at Hackettstown, N.J. and milepost WD 80.3 at Phillipsburg); the Old Road Industrial Track (between milepost 66.5 TG at Washington, N.J. and milepost 67.6 TG at Washington, N.J.); the Pompton Industrial Track (between milepost PQ 21.4 at Mountain View, N.J., and milepost 22.2 at Wayne, N.J.); and the Totowa Spur (between milepost TO 18.0 at Totowa, N.J., and milepost 21.0 at Wayne). Additionally, a segment of rail line between WD 57.25 and WD 58.0 will be added to the lease, according to the notice. These lines are referred to as the “Amended Lease Lines.”

Under the amended trackage rights agreement with NS and New Jersey Transit, DDRR will continue running over the Morristown Line (between milepost 7.8 at Newark Broad Street in Newark, N.J., and milepost 48.1 at Netcong, N.J.); the Morristown Line (between milepost 48.1 at Netcong, and milepost 57.25 at Hackettstown); the Gladstone Branch (between milepost 20.1 at Summit, N.J., and milepost 25.7 at Berkeley Heights, N.J.); and the Montclair Line (between milepost 9.0 at Newark Roseville Avenue in Newark, and milepost 33.9 at Denville, N.J.) The segment of rail line between milepost WD 57.25 and WD 58.0 will no longer be part of the trackage rights agreement, according to the notice. These lines are referred to as the “Amended Trackage Lines.”

“DDRR certifies that its projected annual revenues from this transaction will not result in the creation of a Class I or Class II rail carrier and will not exceed $5 million,” STB reported in the Federal Register. “As is required under 49 CFR 1150.33(h)(1), DDRR discloses in its verified notice that the amended lease agreement with NSR [NS] for the Amended Leased Lines contains an interchange commitment that will affect interchange with carriers other than NSR on the Amended Leased Lines. DDRR states that the interchange commitment in the amended lease has not been changed from the one in the current lease. DDRR has provided additional information regarding the interchange commitment as required under 49 CFR 1150.33(h).”

Also according to the verified notice, DDRR and NS have entered into the amended lease agreement for the Amended Leased Lines, and DDRR, NS and New Jersey Transit are amending the current trackage rights agreement to cover DDRR’s operation of the Amended Trackage Lines, STB reported in the Federal Register. “The earliest this transaction may be consummated is July 1, 2023, the effective date of the exemption (30 days after the verified notice was filed),” according to the federal agency. Petitions for stay must be filed no later than June 23, 2023.