UNION PACIFIC DIRECTED TO PERMIT AMTRAK EXPRESS TRAFFIC:
[Bull Sheet, June 1998]
The Surface Transportation Board has issued a decision directing Union Pacific to permit Amtrak to transport express traffic over UP lines.
At issue was the nature of 'express' traffic, which Amtrak wanted to expand, and UP's contention that the traffic was more akin to general freight which could be in competition with its own business.
The STB loosely identified 'express' as a premium service, at premium rates, conveyed as an adjunct to Amtrak's regularly scheduled passenger service, not restricting it to commodity or shipment size.
Amtrak plans to target various non-hazardous dry goods, refrigerated items, soaps and detergents, paper products, furniture and saline solutions; but not bulk commodities such as coal or automobiles.
There will be a 30-car (passenger and express) train limit, the service will be provided in scheduled passenger (not express-only) trains, and UP may collect any incremental costs it incurs.
The decision was seen as a major boost to Amtrak and its mandate to become subsidy-free by the year 2002.