Union Pacific to close Palestine, Texas, car shop, subject of lawsuit
Union Pacific will close its car shop in Palestine, Texas, as of June 14, eliminating as many as 57 positions. The Palestine Herald-Press reports employees were notified Thursday; a Union Pacific spokeswoman confirmed the closure and attributed it to operational changes across the system. UP had sued in November 2019 to void an agreement with Palestine dating to 1872 requiring a set percentage of the railroad’s jobs remain in the city; a federal court ruled in the railroad’s favor in February, saying federal law preempts the agreement [see “Digest: Federal judge voids UP employment requirement …,” Trains News Wire, Feb. 5, 2021]. The city has said it would appeal that ruling, and may seek an injunction to block the closure.
CSX completes first phase of sale of lines to Virginia
CSX Transportation says it had closed the sale on the first phase of its $525 million agreement to sell right of way to the state of Virginia, part of a multi-billion dollar rail plan announced in 2019 [see “Virginia, CSX announce major rail infrastructure plan,” Trains News Wire, Dec. 20, 2019]. The first phase conveys a permanent land easement to the Commonwealth of Virginia to allow separation of freight and passenger operations between Washington, D.C., and Petersburg, Va. The other two portions of the deal, covering rights-of-way between Petersburg and Ridgeway, N.C., and Doswell, Va., to Clifton Forge, Va., are expected to close in the next two years. “This transaction highlights our ability to find creative ways to generate meaningful value from our assets while enhancing the safety and efficiency of passenger and freight rail service in a vital transportation corridor,” CSX CEO Jim Foote said in a press release. “CSX looks forward to our continued partnership with the Commonwealth which will benefit commuters as well as our valued freight customers in the future.”
Federal, provincial governments reach agreement on light rail station at Montreal airport
The Canadian government and the province of Quebec have reached a deal for $600 million to fund extension of Montreal’s new light rail system to the city’s airport, a project which had been jeopardized by the losses the airport suffered as a result of the COVID-19 pandemic. The Canadian Press reports the Montrea-Trudeau International Airport authority will receive a $300 million loan from the Canada Infrastructure Bank, a $100 million loan from the Quebec government, and $100 million from Transport Canada. The airport authority will be responsible for the remaining $100 million. The airport had already spent $45 million on preparations for the project; that amount will be counted as part of its contribution. The station will give air travelers direct access to downtown via the under-construction Reseau express metropolitain light rail system.
Sorry about the positions being eliminated at the UP Palestine car shop. I hope they can find jobs elsewhere in the system.
But that is assuming they are buying only 1 acre. I don’t think I saw the number of acres in the article.
Mindless??? Thanks for the ad hominem insult. Glad to see that TRAINS is not moderating comments and they are buried below the news piece.
Do the math on the acreage (=525e08/43.5e04), you innumerate, “mindless” and arithmetically challenged commenter (will,this pass the moderators?). Half a billion sales price equals over $12,000 per square foot. Do you think that the Buckinham Branch or Petersburg-Norlina — or even the the third track close in to DC — is worth $12,000 per square foot?
You can buy condos located over the former Potomac Yard for less than that! It surely is corruption of the worst sort.
Mr. Spindler, I’m not sure what part of eminent domain that you don’t understand. Use of eminent domain by states is not free land, despite what many folks think. The state has to pay fair market value for what it takes, which is most often the result of negotiating a price, and occasionally if agreement can’t be reached letting a jury decide the value after a civil trial. Virginia and CSX negotiated a deal that is fair to both sides. Only the mindless see “corruption” in every public transaction.
Virginia is paying half a billion dollars to CSX for right-of-way??? Sounds like a gift to CSX. Petersburg to Ridgeway has been out of service for years and the rails removed. Buckingham Branch is a lightly used corridor.
I don’t understand what part of “eminent domain” states like Virginia don’t understand. Unless, of course, the half a billion is an example of corrupt politicians giving the public’s money to benefactors.