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Rail News Home Rail Industry Trends

3/11/2010



Rail News: Rail Industry Trends

California regional transportation commission pursues UP branch line purchase


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The Santa Cruz County Regional Transportation Commission (RTC) is getting closer to deciding whether to acquire a 32-mile branch line in Santa Cruz, Calif., from Union Pacific Railroad. Last month, the commission completed negotiations with UP and Sierra Northern Railway, which operates the line, to purchase the branch for $14.2 million.

After the acquisition is complete, RTC would spend $5 million to improve the line’s bridges. About $20.2 million in state funding is available for the project, according to the commission. RTC also will consider adding excursion passenger-rail service between Santa Cruz and Davenport.

In 2005, RTC secured a funding commitment from the California Transportation Commission (CTC) for the line acquisition to preserve the right of way. However, the state’s budget crisis worsened the past few years.

“Current CTC staff recommends that adding a passenger-rail component to the project will significantly improve the possibility of [funding] approval,” RTC officials said in a prepared statement. “Sierra Northern has repeatedly expressed interest in operating dinner train and excursion passenger-rail service between Santa Cruz and Davenport, [and] would make an estimated $2 million investment for the necessary train equipment, support facilities and start-up costs.”

The RTC plans to schedule a public hearing on the acquisition next month and conduct a final vote on the purchase at its May 6 meeting.