WASHINGTON — The SMART-TD union has urged federal regulators to reject Union Pacific’s plan to lease nearly 28 miles of track in the Eugene, Ore., area to Genesee & Wyoming short line Central Oregon & Pacific Railroad.
“This transaction raises significant concerns related to the region’s infrastructure, service quality, economic sustainability, and the broader impact on communities, workers, and the public interest,” SMART-TD President Jeremy Ferguson wrote in a Jan. 31 letter posted on the Surface Transportation Board website today. “We urge the Surface Transportation Board to deny this lease request in light of these serious issues.”
The UP deal with CORP, announced in December, will allow the G&W short line to serve 22 customers on the leased trackage, including those shipping or receiving forest products and paper, grain, propane, and scrap metal. [See “Central Oregon & Pacific will operate …,” Trains News Wire, Dec. 11, 2024]. CORP also will operate UP’s Eugene Yard.
UP and G&W executives said the transaction will improve first- and last-mile service, reduce transit times, and lead to growth for the railroad and area shippers. “The transfer of local services in Eugene, Oregon, to Genesee & Wyoming’s Central Oregon & Pacific Railroad will enhance customer service, create efficiencies, and support the regional economic growth,” Union Pacific said in a statement today.
But Ferguson claims the deal will degrade service.
“Shippers in the Eugene area have already experienced significant service delays under Union Pacific’s recent changes in the era of Precision Scheduled Railroading, including reduced frequency of service that has led to industries like Sundance Lumber turning to trucking for timely deliveries,” he wrote. “If this lease is approved, we anticipate additional disruptions, with higher costs passed onto shippers and fewer local jobs with less pay and benefits. By introducing a second railroad operator, we increase the likelihood of interchange delays and additional costs, further burdening Oregon’s economy and its workforce.”
Ferguson also raised safety issues. “As our experience has shown, railroads must have well-trained and territorially qualified personnel to conduct proper switching operations, inspections, and maintenance to prevent accidents and mitigate environmental and public safety risks,” he wrote.
In a statement, G&W said CORP’s employees would safely operate the UP trackage.
“Central Oregon & Pacific Railroad is the second-largest short line railroad in Oregon, operating almost 250 miles for more than 30 years and under the current leadership of a general manager who has grown with the operation over his 29-year tenure. Safety is the guiding value behind every activity we undertake at CORP. In fact, in both 2022 and 2023, CORP was recognized by the American Short Line and Regional Railroad Association for its safety performance,” G&W said.
“Our crews also live in the communities along the line and, as Oregonians, care deeply about operating safely every shift. CORP continuously invests in its infrastructure, safety and training as we endeavor to eliminate all incidents on the railroad while providing critical and sustainable first- and last-mile freight-rail service to local Oregon businesses. CORP employs a robust initial and ongoing training process, which not only meets but often exceeds standards and requirements of the Federal Railroad Administration, for both new and existing employees. In addition, as part of its agreement with Union Pacific, CORP will have stringent requirements on service and maintenance. Rest assured, CORP takes this opportunity seriously,” G&W said.
UP did not immediately respond to a request for comment.
Separately, a group of state and local Oregon lawmakers questioned the lease deal in a letter to STB Chairman Patrick Fuchs. They asked the board to delay a decision until receiving input from Oregon officials.
“The proposed lease from a railroad with highly skilled train engineers, conductors, and inspectors to a smaller railroad with fewer resources raises concerns. Fewer staff with less working experience could jeopardize the flow of rail traffic, potentially leading to an adverse effect on local, regional, and interstate commerce,” the lawmakers wrote.
If the deal goes through and five years from now UP wants the operations back, we will hear the same arguments.
Once again Oregon lawmakers shoot themselves in the foot. These type of deals have been happening for decades. I notice none of the shippers are complaining. They know they will be getting better service.
A total smokescreen by SMART-TD and Oregon lawmakers.