‘Time to move forward’: UP gives Metra an ultimatum on track fees — agency calls it price gouging

The conflict between Metra and the Union Pacific is deepening over the cost of the commuter railroad using the freight giant’s tracks.

Last week, UP presented Metra with new pricing to access its lines in the Chicago region, effective July 1.

“While we would rather have an agreement in place with Metra, after nearly six years (of negotiations), it is time to move forward,” CEO Jim Vena told Metra in a letter.

Metra responded by asking a federal judge to rule that UP “cannot unilaterally force Metra, its riders and the taxpayers to bear a significant increase in the compensation paid to Union Pacific.”

The issue dates back to 2019, when the freight railroad decided it was no longer feasible to operate trains on Metra’s three commuter lines, the UP North, Northwest and West.

Over the years, the two railroads have negotiated a plan to transfer staff and mechanical assets to Metra. However, the talks stalled over the UP’s proposed charges for track usage, resulting in litigation and appeals to the U.S. Surface Transportation Board.

Metra states in an ongoing lawsuit that it was paying UP about $21 million to use the tracks and both sides had agreed it was reasonable to continue that rate.

But now, UP is insisting “on an annual payment of $40.7 million just for use of the tracks,” the lawsuit says. In addition, “Union Pacific is demanding substantial additional rental payments for properties necessary to operate the UP Lines.”

UP Vice President for Public Affairs Liisa Stark asserted in a statement that, “for more than a decade, Metra has paid rates that are significantly below commercial market value for the use of Union Pacific’s assets.”

“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.

Despite the disagreement, “we will not be stopping service to the millions of people who use Metra daily,” Vena wrote Metra CEO Jim Derwinski.