News & Reviews News Wire Metro-North to withhold payments to NJ Transit over service issues NEWSWIRE

Metro-North to withhold payments to NJ Transit over service issues NEWSWIRE

By Angela Cotey | November 22, 2019

| Last updated on November 3, 2020

Amount being withheld to increase to 15 percent in January

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MetroNorth_NJT_Lassen
A Suffern-bound NJ Transit train, with a PTC-equipped NJ Transit cab car leading a Metro-North locomotive, arrives at Secaucus Junction, N.J., in August 2019. Metro-North, unhappy with NJ Transit service, is increasing the amount of payment it is withholding from the New Jersey agency for contract operations on two lines.
TRAINS: David Lassen

NEW YORK — Metro-North president Catherine Rinaldi is prepared to withhold payments to NJ Transit for operations on Metro-North’s Pascack Valley Line until service on the route improves, the Rockland/Westchester Journal News reports.

The newspaper reports that Rinaldi, in a letter to NJ Transit Executive Director Kevin Corbett, said her agency would begin withholding 15% of its month subsidy for NJ Transit operation of lines west of the Hudson River in New York. The three northernmost stops on the Pascack Valley Llne — Pearl River, Nanuet, and Spring Valley — are all in New York. NJ Transit also operates Metro-North’s Port Jervis line, the eight-station New York segment of a route connected to NJ Transit’s Main Line and Bergen County Line.

Failure to restore two express trains on the Pascack line, as well as increases in cancelled trains on both routes because of NJ Transit’s engineer shortage, have led to the move.

In the letter, obtained by the newspaper, Rinaldi wrote, “It is very frustrating that our riders are subjected to the same unreliable service despite the fact you have graduated several new classes of locomotive engineers in the intervening months.” NJ Transit has frequently touted its accelerated pace of engineer training, saying it will graduate six classes of new engineers by the end of 2020 [see “First NJ Transit engineer training group completes classroom instruction,” Trains News Wire, April 1, 2019].

She said that, beginning in January, Metro-North would begin withholding 5% of its payment, on top of 10% it began withholding in December 2018 for the same reason.

The money will be placed in an escrow account while the two sides discuss incentive payments in their agreement. The dollar figure involved is unknown.

NJ Transit did not respond to the newspaper’s request for comment.

NJ Transit’s ongoing service issues have led to creation of a New Jersey Senate panel to investigate the commuter agency and seek solutions. That group held its first meeting earlier this month. [See “State senate panel holds first hearing on NJ Transit,” Trains News Wire, Nov. 14, 2019.]

3 thoughts on “Metro-North to withhold payments to NJ Transit over service issues NEWSWIRE

  1. What’s wrong with this picture (assuming I have it somewhat correct…). NJ Transit engineers left to work at MetroNorth – which is partly responsible for the shortage. MetroNorth has more engineers than it presently needs… but the union representing NJ Transit engineers won’t let MetroNorth supply personnel for the lines NJ Transit operates on MN’s behalf (note: not taking sides here). Not sure how strong MN’s case is here. Either way.. riders lose. And MN/NJ Transit loses riders

  2. I have a solution that doesn’t require a committee to study various solutions. All service east of the Hudson river becomes Metro North and all service west of the Hudson becomes NJ Transit. Metro North shouldn’t have a problem with this since they obviously lose money on the service because all Metro North service loses money. This should improve MN financial results. NJT should be happy because they now control the entirety of the two lines even though finances may take a small hit. A small per passenger subsidy from New York to New Jersey may be made annually or monthly. There will probably be a couple of union issues but those should be able to be worked out.

    There, my solutions to the issue. And I give it to you at no charge. Now tell me why it won’t work.

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