Blue Comet, you ask the magical question...."when?"
The original thread on the rehab began in 2006. Back then it was projected that due to the upcoming "NYC Tunnel to Macys basement" project that Gov. Corzine had approved, it was thought that Clayton was positioning himself for the large sand delivery project that the tunnel would require. Since the project was cancelled, any progress on the rehab has been very slow most likely since there probably has not been a customer identified that will buy large bulk loads to make the rail line maintainable.
Dribs and drabs of rebuild work has been conducted under a transportation grant that Clayton qualified for (ties, bridge rebuild, crossings, etc). But most people are guessing that the line won't activate unless Clayton can find that significant customer base.