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Vermont Railway: Preserving The Former Rutland

Published: July 19, 2024

By: Adam Burns

The Vermont Railway is one of the most iconic railroads in the United States, carving out a significant history since its inception. 

Today, the successful Class II carrier operates more than 400 miles of track throughout its home state as well as in nearby New Hampshire..

This article will provide an expansive look at the Vermont Railway, covering its historical milestones and present-day operations.

We will delve into the infrastructure, total route mileage, freight traffic, and public train excursions that define its relevance today.

Vermont Railway SD70M-2 #431 leads train #264 around a curve at East Claredon, Vermont on September 8, 2018. Doug Kroll photo.

Introduction

The Vermont Railway is a Class III railroad operating within the state of Vermont. Like other regional railroads, its primary focus is freight, although it also offers nostalgic public train excursions beloved by tourists and rail enthusiasts.

Operated by Vermont Rail System (VRS), the Vermont Railway is a crucial part of freight transportation in the northeastern United States.

History

Early Beginnings

The Vermont Railway was established in 1964 after the Rutland Railway went bankrupt and ceased operations. The state of Vermont intervened, purchasing the 120-mile segment of track from Burlington to North Bennington.

This purchase led to the formation of the Vermont Railway on January 6, 1964. Its establishment marked the first time in the United States that a state owned and operated a railroad, setting a precedent for public-sector involvement in rail transport.

Rutland Railroad

The Rutland Railroad, once a prominent rail line in the northeastern United States, boasts a complex and storied history dating back to the 19th century.

Formed from the merger of several smaller railroads, the Rutland Railroad was officially chartered in 1843.

Its primary route extended from Chatham, New York, through Vermont, and into Bellows Falls, Vermont, providing a critical link between the New York Central Railroad and the Canadian Pacific Railway.

The initial years saw rapid expansion and the establishment of numerous branch lines, including routes to Burlington, Vermont, which became the northern terminal.

The railroad played a significant role in supporting the marble, dairy, and timber industries, transporting raw materials and finished goods across the region.

Like many railroads of the era, the Rutland faced challenges related to competition, labor disputes, and the economic fluctuations brought about by the Great Depression.

Labor strikes in the early 20th century notably impacted operations, leading to temporary shutdowns and financial instability. Despite efforts to modernize and streamline operations, these challenges culminated in the railroad's first bankruptcy in 1938.

Post-World War II, efforts to revive the Rutland included dieselization and attempts to enhance passenger services. However, competition from road transport and ongoing labor issues continued to plague the railroad.

A significant labor strike in 1961 led to the cessation of operations, and the company filed for bankruptcy once again.

In 1963, the assets of the defunct railroad were sold off. The state of Vermont purchased a portion of the tracks, leading to the creation of the Vermont Railway in 1964, thus preserving a part of the Rutland’s legacy.

Today, the history of the Rutland Railroad is remembered for its crucial role in regional development and its enduring impact on rail transportation in Vermont and beyond.

Development and Expansion

During its formative years, the Vermont Railway (VTR) prioritized substantial investment in upgrading the legacy locomotives and rolling stock inherited from the Rutland Railroad. The company procured a combination of new and used locomotives and also leased several hundred freight cars to enhance its operational capacity.

The railway continued its expansion by venturing into the intermodal business in 1965. In 1972, it acquired the Clarendon and Pittsford, facilitating access to a limestone plant near Florence, Vermont. The C&P name was retained as a separate legal entity, managing the newly acquired trackage.

The company achieved significant financial milestones throughout the '70s by grossing over $2 million in revenue for the first time. Net earnings, approximately $20,000 annually, were reinvested into further improvements for the railroad.

By 1982, the railroad had repaid the State of Vermont for the trackage it had acquired in 1964, enabling the railway's initial operations.

The following year, VTR acquired 23.7 miles of track between Rutland, Vermont, and Whitehall, New York, from the Delaware and Hudson. This trackage, which was initially in poor condition with speed restrictions as low as 6 mph, underwent extensive rehabilitation, including upgrades to the roadbed, track, and ties.

Since the track was brought up to higher standards, Whitehall has emerged as a major interchange point. Additionally, since 1996, Amtrak's Ethan Allen Express has been operating on the Rutland to Whitehall section, further integrating the railway into the regional transportation network.

In the following decades, the Vermont Railway expanded its footprint:

- **11/1972**:  The acquisition of the Clarendon & Pittsford Railroad (CLP) from the Vermont Marble Company marked a significant expansion.

The CLP provides daily service to the cutting-edge limestone processing plant operated by OMYA on the mountainside above Florence, Vermont. OMYA quickly rose to prominence as the railroad’s largest shipper—a status it maintains to this day.

In August 1983, the Clarendon & Pittsford Railroad strategically extended its reach by purchasing the Delaware & Hudson line between Rutland and Whitehall, New York.

This 24-mile segment has since become indispensable for transporting fuel oil and gasoline, centered around the main interchange point in Whitehall, NY.

- **5/1997**:  The Vermont Railway's acquisition of the Green Mountain Railroad (GMRC) from President and major stockholder Jerome Hebda in May, 1997 led to the creation of the Vermont Rail System (VRS).

At the time of the sale, GMRC was notably well-managed, boasting a lean, efficient workforce, a solid traffic base, and a debt-free status.

With this strategic move, Vermont Railway was able to leverage its robust maintenance-of-way policy, supported by modern equipment and skilled employees, to enhance the operational efficiency of GMRC.

This synergy fostered significant improvements in business along the line, solidifying VRS's role in regional rail transportation.

- **9/1999**: Acquired the Washington County Railroad's "Montpelier & Barre Division," formerly part of the New England Central Railroad.

- **4/2002**: Acquired the New York and Ogdensburg Railway. The (NYOG encompasses a 31.2-mile stretch of track between Norfolk and Ogdensburg, New York, and forms part of the historic footprint of the former Rutland Railroad.

Jay Wulfson harbored a longstanding ambition to acquire this pivotal section for his expanding rail network.

His vision came to fruition when NYOG was integrated into the Vermont Rail System, symbolically reuniting the surviving rails of the Rutland Railroad under a singular, dedicated operator.

This consolidation marks a significant chapter in the legacy of Northeastern rail transportation.

These acquisitions have allowed Vermont Railway to integrate multiple regional lines into a cohesive network, enhancing resource allocation and operational efficiency.

- **2003**:  Acquired the Washington County Railroad's "Connecticut River Division" in 2003, which operates between White River Junction and Newport, Vermont.

- **2020**:  The latest addition, this line - the New England Southern Railroad - was acquired in 2020 which operates between Tilton and Concord, New Hampshire.

Modern Era

In recent years, Vermont Railway has modernized its infrastructure, upgraded its rolling stock, and diversified its service offerings. Today, it remains a key player in Vermont's transportation sector, alongside other lines within the Vermont Rail System network.

Route Mileage and Infrastructure

Currently, the Vermont Railway encompasses approximately 400 miles of track. Its significant routes include:

- **Burlington to North Bennington**: The original 120-mile segment purchased in 1964, traversing central Vermont.

- **Rutland to Bellows Falls**: Formerly part of the Green Mountain Railroad.

- **White River Junction to Newport**: A section acquired through the Washington County Railroad.

Freight Traffic

Types

The railroad transports a variety of commodities, including:

- **Lumber and Forest Products**: One of the largest freight categories, reflecting Vermont's robust timber industry.

- **Stone and Aggregates**: Transported primarily from quarries to construction sites.

- **Agricultural Products**: Including bulk grains, fertilizers, and dairy products.

- **Fuel and Chemicals**: Including propane, ethanol, and industrial chemicals.

Vermont Railway GP9u #804 has the V"ermont Valley Flyer" excursions southbound near Sunderland, Vermont on July 11, 1998. Doug Kroll photo.

Public Train Excursions

In addition to freight services, Vermont Railway offers public train excursions that provide unique and nostalgic rail experiences:

The Champlain Valley Flyer

This popular excursion takes passengers through the scenic Champlain Valley, offering picturesque views of Lake Champlain and the surrounding countryside.

Fall Foliage Tours

During the autumn months, the railway operates special fall foliage tours, allowing passengers to witness Vermont's stunning autumn colors from the comfort of vintage railcars.

Holiday Trains

Holiday-themed excursions, such as the "Polar Express," bringing festive joy to families and children, are another highlight of Vermont Railway's public offerings.

Railfan Specials

For rail enthusiasts, the Vermont Railway organizes special railfan trips, featuring historic locomotives, vintage railcars, and unique photography opportunities.

Diesel Roster

Vermont Railway GP40-2W #311 wears a special livery commemorating the 50th anniversary of the Vermont Rail System on July 31, 2014. Doug Kroll photo.

Conclusion

The Vermont Railway, with its rich history and vital role in today's transportation landscape, is an exemplary model of how regional railroads can adapt and thrive.

From its establishment in 1964 to its present-day operations, the railway has continually evolved to meet the needs of its customers and the communities it serves.

With strategic investments in technology, infrastructure, and sustainability, Vermont Railway is poised to continue its legacy of service and innovation for years to come.

Whether transporting essential goods, offering scenic rail excursions, or contributing to local economic prosperity, Vermont Railway remains a cornerstone of Vermont's transportation infrastructure and a significant player in the broader national rail network.