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UP closes door on Utah Transit deal

Union Pacific Railroad Sept. 20 announced it closed the $185 million sale of land, track, operating rights and facilities to Utah Transit Authority (UTA).

UP will receive about $140 million in third-quarter pre-tax income from the transaction, adding about $88 million to its after-tax earnings. However, about $16 in pre-tax income is deferred, pending arrangements to relocate various existing facilities.

As part of the deal, UTA takes ownership of about 175 track miles from Brigham City to Payson, Utah, and receives operating rights over about 20 track miles between Brigham City and Ogden.

"Union Pacific is able to help Utah passenger rail grow while also providing room for continued growth by our freight customers," said UP Chairman and Chief Executive Officer Dick Davidson in a prepared statement.

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More News from 9/20/2002