Advantage Metra: Feds give agency track rights in Union Pacific dispute

Metra and Union Pacific may be embroiled in a power struggle, but a significant federal ruling in the commuter railroad’s favor ensures riders won’t experience any drama, officials said Monday.

The U.S Surface Transportation Board agreed last week to award Metra rights over the tracks used by the UP North, Northwest and West lines in the Chicago region.

Union Pacific decided in 2019 it wanted to focus on freight and shift passenger operations to Metra. But the two are millions of dollars apart on the cost of using UP’s tracks, according to legal documents.

“This ruling will allow Metra to continue operating on the three UP lines while negotiations continue with Union Pacific over the conditions and compensation regarding our use of its tracks,” Metra Communications Director Michael Gillis said.

“Union Pacific has always been committed to ensuring that the commuter service provided to millions of Chicago riders will continue,” said Kristen South, UP’s senior director of communications.

“With this guidance from the Surface Transportation Board, Union Pacific looks forward to working with Metra on a fair and reasonable resolution to the matter.”

Over the years, the two railroads have negotiated a plan to transfer staff and mechanical assets to Metra, which became responsible for operating UP trains in May. However, the talks stalled over financial issues, resulting in litigation and appeals to the U.S. Surface Transportation Board.

In May, UP presented Metra with new pricing to access its lines in the Chicago region, effective July 1, and the agency sought intervention and trackage rights.

“Our goal throughout this process has been to reach an agreement based on objective industry standards, good-faith negotiations, and the public interest,” Gillis said. “Metra’s priorities remain to provide safe, reliable, and high-quality service for its passengers, while being a good steward of taxpayer dollars.”

STB members reasoned that “there is a compelling reason to award Metra terminal trackage rights over the UP Lines,” given it provided more than 13 million passengers trips in 2024.

Metra’s concerns “that even a temporary cessation of service would have wide-ranging and harmful economic and social impacts” had merit, officials concluded, adding there was a strong public interest at stake.

“If Metra’s heavily trafficked public commuter rail service is subject to unreviewable terms and pricing set unilaterally by UP and can disappear on a whim, that is not adequate service,” the board stated.