Union Pacific pushes for settlement on Metra rail line use

Union Pacific Railroad on May 21 publicly issued a request for Chicago commuter railroad Metra to accept a financial agreement based on market value for the use of UP's rail lines.

For over 10 years, Metra has paid rates below commercial market value, UP officials said in a press release. UP has attempted to reach an agreement with Metra for nearly six years, submitting offers and attempting to mediate an agreement through a Surface Transportation Board process. Most recently UP offered to enter binding arbitration with Metra to settle the agreement, without success.

“As a private company with a fiscal responsibility to our many stakeholders, including 30,000 employees and thousands of communities spanning our 23-state network, we cannot continue subsidizing Metra’s operations,” said Liisa Stark, vice president for public affairs for UP. 

UP's raised rates will take effect after the current agreement with Metra expires on July 1. The new rates are consistent with rates paid by other passenger rail authorities in other states, UP officials said. UP's message to Metra comes as several of UP's commuter lines and approximately 800 employees were successfully transferred to Metra.

In an email, Metra officials said they are reviewing UP's proposal.

"We are committed to making this [process] a seamless transition for our riders and being good stewards of the funding we receive from our riders and taxpayers," they said.