Separation from Penn Central in
Sprague, Connecticut The New Haven had purchased a number of the P&W's shares in the three-quarters of a century it had held the lease, holding 28 percent of the company's total shares by the time Penn Central took over. While the New Haven had long tolerated the peculiar rules that kept the P&W alive as a company, the railroad's new lessor was not willing to tolerate them any longer and demanded the voting rules and clauses that heavily restricted its control be rewritten. The same rules that left the New Haven unable to take over the P&W also frustrated the Penn Central, which found itself with only three percent voting power, despite both leasing the company and inheriting the New Haven's portion of the company's shares. As part of its order requiring Penn Central to take over the P&W under the terms of the lease, the ICC also required the P&W to change its voting clauses by June 30, 1969, or else Penn Central would be allowed to take direct control and be able to proceed with abandonment. Eder and the rest of the P&W leadership had considered seeking merger into another railroad, such as the
Boston and Maine Railroad (B&M) or the
Norfolk and Western Railway (though the latter company did not connect to the Providence and Worcester, at that time it was considering a purchase of the
Delaware and Hudson Railway). Now, however, time was short and the previously half-hearted idea of returning the P&W to independence was the best path to saving the company. Ignoring Penn Central's objections, in 1969 the P&W
incorporated a new version of the company in Delaware and merged the existing company into the new one, while maintaining the voting rules from the company's original 1844 charter; this was done for "the simplification of the corporate structure" of the company. Then, on April 6, 1970, the P&W formally asked the ICC to allow their company to exit the New Haven merger and become independent; the previously commissioned report was updated and found profitable operations feasible. While it did not want the P&W, Penn Central was unwilling to allow this to happen either, as it wanted both to continue serving large customers in East Providence and Worcester and access to the P&W's real estate holdings in Providence, leading to a series of court battles. On February 3, 1973, the Providence and Worcester Railroad became an independent railroad again after 85 years.
Expansion The newly independent P&W began with of track between its two namesake cities in addition to the East Providence Branch and two isolated Penn Central lines ( from
Slatersville to Woonsocket and a segment of the former
Valley Falls Branch) which were transferred as well. For motive power, P&W initially operated a small fleet of five
ALCO RS-3 locomotives, plus five
cabooses, all leased from fellow Northeastern United States railroad Delaware and Hudson Railway. The Providence and Worcester found its first opportunity for expansion in a recently abandoned line cast off by the
Boston and Maine Railroad (B&M). In 1974, P&W purchased this long branch between Worcester and
Gardner, Massachusetts, from B&M, connecting it with the latter company's main line. Penn Central had not forgotten how the P&W had escaped from its control, and created delays in car
interchange between itself and the P&W, until the latter company once again appealed to the ICC for assistance. The new connection with the B&M in Gardner allowed P&W access to a more friendly interchange partner. Almost immediately, the independent P&W was recognized for providing exemplary service to its customers, in direct contrast with Penn Central; in 1974 the
Rhode Island Department of Transportation recommended giving sole responsibility for all freight rail in Providence to P&W. Needing a more permanent solution than its leased ALCOs, P&W first reached out to dominant American locomotive manufacturers
GE Transportation and
General Motors'
Electro Motive Division, but both refused to give the newly independent company quotes for new locomotives. Shunned by American manufacturers, P&W turned to
Montreal Locomotive Works (MLW), the Canadian affiliate of ALCO which survived ALCO's dissolution in 1969. MLW saw an opportunity to sell its first locomotives in America, and accepted P&W's order for five new
MLW M-420R locomotives, tagging on to an order for 80 M-420s by
Canadian National Railway. These new locomotives became the backbone of the Providence and Worcester fleet, and the older RS3s were given back to the Delaware and Hudson. The federal government created the
United States Railway Association (USRA) in 1974 to manage the formation of
Conrail, which was to take over a number of bankrupt railroads in the Northeast, including Penn Central. Penn Central owned a line that connected Worcester to
Groton, Connecticut, via
Plainfield, Connecticut. The USRA decided to include only the portion between Groton and Plainfield in Conrail, with the remaining portion reverting to its original owner: the
Norwich and Worcester Railroad (N&W). The N&W had been leased by a variety of railroads since 1869, but was now independent again, and proposed to resume operating its portion of the line. Seeing an opportunity for expansion, the Providence and Worcester made a bid for the line from Plainfield to Worcester as well, winning the support of Connecticut business groups, unions, and
Chris Dodd, at the time a
U.S. Representative. The latter stated in January 1974 that it was "extremely questionable whether the Norwich and Worcester has demonstrated the ability to provide even minimal service to eastern Connecticut". The USRA found the arguments of the Providence and Worcester and its supporters that it was in a better position to take over the line on account of its years of profitable operations persuasive, and transferred it to the railroad later that year. The remaining of the N&W went to Conrail, but the Providence and Worcester was not satisfied with its share of the line and sought to acquire the rest of the line from the newly formed railroad. Conrail initially was unprofitable, and in 1976 the Providence and Worcester approached the company with an offer to buy its 27-mile line between Plainfield and Groton. Conrail was unwilling to give up the line, which was one of its most profitable in the state, leading the
Connecticut Department of Transportation to request that the federal government order the line transferred that year. The following year, Conrail was forced to sell the line, due to the law that established the company requiring it to sell lines to any private companies offering a fair price. While P&W wanted all of Conrail's lines in Southern New England, it had to compete with the Boston & Maine, at the time in the sights of newly formed
Guilford Transportation Industries, which bought portions of Conrail's network in Connecticut.
1990s The Providence and Worcester further expanded into Connecticut in 1993, when it purchased Conrail's line between
Cedar Hill Yard in
North Haven and
Middletown. Between November 1993 and June 1994, the railroad improved the line in cooperation with the Connecticut Department of Transportation, replacing more than 5,000 ties and of rail in a $650,000 project. After the project was complete, its speed limit increased from 10 to 25 miles per hour. In the mid-1990s, P&W traffic decreased when a number of its major customers closed or moved. In response, the company expanded interchange traffic with other railroads. The company reached an agreement in 1996 for trackage rights over the
Northeast Corridor between
New Haven and the
New York and Atlantic Railway's
Fresh Pond Junction yard in
Queens, New York. The Providence and Worcester uses the tracks to haul stone between its connection with the
Branford Steam Railroad and New York City.
21st century s at
Pawtucket/Central Falls station in 2023 The
Boston Surface Railroad was formed in 2014 to restore passenger service on the P&W main line between Providence and Worcester, which was discontinued by the New Haven in 1960. Boston Surface intended to contract its train operations—commuter service with a stop in Woonsocket—to the Providence and Worcester. In 2019, the Rhode Island Department of Transportation reported that no substantial progress on launching train operations had been made. The railroad filed for bankruptcy later that year, though company officials said in 2021 that they intended to begin operations eventually. P&W formed an agreement with the
New England Central Railroad in 2012 to move Canadian National Railway trains between Canada and southern New England. A similar agreement was signed in 2014 to move
Canadian Pacific Railway freight, with
Vermont Rail System joining along with NECR. This was made possible by the reopening of a mothballed P&W line between
Willimantic and
Versailles, Connecticut in 2007, which had been out of service for several decades. P&W trains connect with New England Central at Willimantic via this line. Shortline holding company
Genesee & Wyoming announced in August 2016 that it intended to buy the Providence and Worcester Railroad for $25.00 per share, or approximately $126million. The acquisition was completed on November 1, 2016, with P&W's shares placed in a trust pending
Surface Transportation Board approval. The STB approved the acquisition on December 16, 2016, subject to a condition that G&W not interfere with the ability of
Pan Am Railways (via its operating subsidiary Springfield Terminal) to connect with CSX in Worcester. G&W stated that it "does not contemplate any material changes to P&W's operations, maintenance, or service" following the purchase. In 2019, the Providence and Worcester reopened of track between
Hartford and
Rocky Hill, known as the Wethersfield Secondary, which had been out of service since 2008. The reopened line provided a more direct route for freight to reach Middletown. ==Operations==