Union Pacific buys North-South corridor

[jedicurt]

i was reading this article this morning and thought i would pass it on to you all, incase you had missed it

Union Pacific Railroad buys rail line from state of Oklahoma | NewsOK.com

[OKCisOK4me]

All those state rail maps never showed it being state owned--only as UP. I'll have to look at the map again cause if the UP had a line beneath it...then that is a detail I have missed.

[Just the facts]

$35 million for something both the railroad and the State said would be too expensive to ever be acquired from scratch again. Sounds to me like the State got ripped off. I shutter to think what the State could do with the 1,400 miles of track Rock Island used to own in Oklahoma.

[LakeEffect]

$35 million for something both the railroad and the State said would be too expensive to ever be acquired from scratch again. Sounds to me like the State got ripped off. I shutter to think what the State could do with the 1,400 miles of track Rock Island used to own in Oklahoma.

Plus the $100 million UP has put into the line to keep it running - I think UP had a right to purchase after having spent that money over the years.

[Just the facts]

Well, that is slightly better than the deal Randy Hogan got. The politicans are improving. Unless of course we have to spend the $35 million on the tracks.

[OKCisOK4me]

$35 million for something both the railroad and the State said would be too expensive to ever be acquired from scratch again. Sounds to me like the State got ripped off. I shutter to think what the State could do with the 1,400 miles of track Rock Island used to own in Oklahoma.

Usta own is a broad term. So many miles of the original CRI&P system was abandoned more than 30 years ago, but yes they did have an extensive criss crossing system here in the state in the early 20th century.

[LakeEffect]

Well, that is slightly better than the deal Randy Hogan got. The politicians are improving. Unless of course we have to spend the $35 million on the tracks.

If the State had paid the cost to build it, I would have expected them to get more cash out of the deal. However, the State received it in bankruptcy, so I think it's a fair deal. PLUS, UP connects to the north and south in Kansas and in Texas. It's not likely anyone else would have bid on, and won, the line.

[ou48A]

How many trains use this line per day?

[LakeEffect]

How many trains use this line per day?

Not many, that I know of. UP doesn't use it like BNSF uses their N/S line. I think UP may do a maximum of 15 a day, but I think it's much less. BNSF, on the other hand, does about 40 a day right now.

[OKCisOK4me]

Not many, that I know of. UP doesn't use it like BNSF uses their N/S line. I think UP may do a maximum of 15 a day, but I think it's much less. BNSF, on the other hand, does about 40 a day right now.

Yeah, UPs busiest corridor through the state is the one from Kansas City to Dallas which runs via Vinita, Muskogee, McAlester & Durant. Primary unit trains on that route are coal.

[Larry OKC]

One thing I didn't catch in the article was how much the State paid for it. Only that the Leg & Gov came up with appropriations to do so and since money was limited they had to pick and choose which ones to buy. Hopefully they didn't take a loss on it and if the State made some money on the deal, that's ok too. But like was mentioned the line about it being prohibitively expensive to do the deal today makes me wonder.

Good that it was preserved and apparently a good deal for the railroad. Reminded me of the State's decision to give away the old beams from I-40 to the counties. Good for the counties but not good for the state as even recycled, the beams were reportedly worth millions. That is revenue the state let go. At the very least charge the counties 50% of the market rate or something.

[LakeEffect]

Reminded me of the State's decision to give away the old beams from I-40 to the counties. Good for the counties but not good for the state as even recycled, the beams were reportedly worth millions. That is revenue the state let go. At the very least charge the counties 50% of the market rate or something.

And then the counties would have had to raise taxes to pay for that...? The whole point is that revenue to repair/replace bridges has lacked, so this was an appropriate way to do that without needed additional appropriations.

[ou48A]

Yeah, UPs busiest corridor through the state is the one from Kansas City to Dallas which runs via Vinita, Muskogee, McAlester & Durant. Primary unit trains on that route are coal.

It’s hard for me to imagine that line being busier than UP route that runs through Guymon.

[ou48A]

UP: Union Pacific Railroad Officially Acquires Vital Rail Line in Oklahoma

Union Pacific Railroad Officially Acquires Vital Rail Line in Oklahoma
Rare Agreement with Oklahoma Department of Transportation preserved rail line 30 years ago

Spring, Texas, October 08, 2012 – Union Pacific Railroad acquired complete ownership of a rail line in Oklahoma decades after state officials saved what continues to be a link of commerce through the Sooner State.

The agreement was originally drafted 30 years ago when Chicago, Rock Island and Pacific Railroad Company filed for bankruptcy, potentially eliminating a critical rail connection that linked Texas and Kansas through Oklahoma. The State of Oklahoma purchased 351 miles of track that run through Enid, El Reno, Oklahoma City, Chickasha, Duncan and Lawton. The railroad tracks were operated by Oklahoma-Kansas-Texas Railroad Company through a 30-year-lease purchase agreement signed November 1, 1982. Union Pacific acquired the tracks after several mergers and finished paying $35 million plus accrued interest for the rail line last year.

"This type of agreement was unique, but we felt it was critical that we preserve the rail corridors and work towards getting them back in the hands of private industry," said Oklahoma Secretary of Transportation Gary Ridley. "The railroad tracks that were saved 30 years ago are a valuable part of the transportation network and are bustling with activity today."

Union Pacific maintains the rail line and operates trains carrying mixed goods through the area. The north – south line is a route favored by oil and gas companies operating in the Anadarko Basin. Trains deliver frac sand and pipe used in the hydraulic fracturing process.

Ridley and Tony Love, Union Pacific assistant vice president - Real Estate, signed the documents that transfer the rail line to Union Pacific during the Oklahoma Department of Transportation Commission meeting today. Love presented Ridley with a Union Pacific Railroad Partnership Coin, which commemorates the company's 150th anniversary.

"This coin is representative of so many partnerships Union Pacific has built over our 150-year history and we thank the Oklahoma Department of Transportation for being a part of our history through the foresight you had in recognizing the value that rail transportation brings to the state," said Love. "Your investment has paid off for rail shippers in western Oklahoma and throughout the country."

Union Pacific invested more than $214 million in Oklahoma transportation infrastructure from 2007 to 2011. The company operates 1,173 miles of track in Oklahoma, which serve as a vital link between the Midwest and the Gulf Coast. Grain bound for export moves through the state, as well as coal bound for southern power plants. Union Pacific also ships Oklahoma wheat, cement and aggregates out of the state.

About Union Pacific

It was 150 years ago that Abraham Lincoln signed the Pacific Railway Act of July 1, 1862, creating the original Union Pacific. One of America's iconic companies, today Union Pacific Railroad is the principal operating company of Union Pacific Corporation (NYSE: UNP), linking 23 states in the western two-thirds of the country by rail and providing freight solutions and logistics expertise to the global supply chain. From 2000 through 2011, Union Pacific spent more than $31 billion on its network and operations, making needed investments in America's infrastructure and enhancing its ability to provide safe, reliable, fuel-efficient and environmentally responsible freight transportation. Union Pacific's diversified business mix includes Agricultural Products, Automotive, Chemicals, Coal, Industrial Products and Intermodal. The railroad serves many of the fastest-growing U.S. population centers and emphasizes excellent customer service. Union Pacific operates competitive routes from all major West Coast and Gulf Coast ports to eastern gateways, connects with Canada's rail systems and is the only railroad serving all six major Mexico gateways.

[LakeEffect]

pdf_oklahoma_usguide.pd.pdf

Let's see if that works - interesting information from UPRR.

[HangryHippo]

pdf_oklahoma_usguide.pd.pdf

Let's see if that works - interesting information from UPRR.

Their volumes are down quite a bit from 2007. I would assume it's the economy, but maybe we don't get the train traffic here that other states do. I'm not familiar with it at all.

[LakeEffect]

Their volumes are down quite a bit from 2007. I would assume it's the economy, but maybe we don't get the train traffic here that other states do. I'm not familiar with it at all.

The economy took its toll on shipping, but traffic is generally at pre-recession levels on other lines. It could have been a factory closing or something of that nature that really hit their numbers...

[Larry OKC]

And then the counties would have had to raise taxes to pay for that...? The whole point is that revenue to repair/replace bridges has lacked, so this was an appropriate way to do that without needed additional appropriations.

But how many times has ODOT in particular complained that they don't have enough revenue and then instead of selling the beams and getting something for them (if not market value) they just gave them away. Absurd. Good for the counties that get the beams (but they still have to come up wit the other costs, so taxes amy still go up even with the freebies). Not so good for the State and ODOT in particular.

Its like the OKCPS chairperson and superintendent crying about lack of funds to spend to buy the old high school for the DT elementary when according to this years budget they have multi-millions in unspent funds. More than what the whole state brings in yearly thru the Education Lottery (much less OKC's share).

[HangryHippo]

Larry, I think in this instance your stance is misguided. We needed to get our state bridges up to snuff. And if this saves ODOT having to seek additional appropriations for the bridges' construction and can repair a lot of the state's bridges with beams they already have, then do it. It was a good thing for all of Oklahoma and that's a good thing for all of us. Hell, I would have loved for ODOT to make some money to do other things, but this was a good move.