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.
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