Union Pacific is urging Metra to accept the financial agreement it has offered for the use of its rail lines, calling it “fair, reasonable and based on market value.”
Saying the contract offers Metra flexibility over its financial obligations based on service schedules and the number of trains using its tracks, Union Pacific urged Metra to accept the agreement and end negotiations.
“For more than a decade, Metra has paid rates that are significantly below commercial market value for the use of Union Pacific’s assets,” said Liisa Stark, Vice President for Public Affairs for Union Pacific. “It is our hope these new rates will resolve the issue without further expensive litigation or regulatory appeals that has no benefit to Metra, Union Pacific nor Chicago taxpayers.”
Union Pacific said the new rates would take effect on July 1 when the current contract agreement expires. The market-based rates are consistent with other agreements Union Pacific has in Illinois, Colorado and California, officials said.
The call for a settlement comes after nearly six years of negotiations between Union Pacific and Metra over financial compensation for the use of Union Pacific’s rail lines. Officials said negotiations have covered numerous offers and mediation through a Surface Transportation Board process. Union Pacific offered to enter binding arbitration with Metra to settle the question, as well. None of the negotiations have been successful.
“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,” Stark said.