The Surface Transportation Board (STB) has approved Central Oregon & Pacific Railroad Inc. (CORP) to lease and operate specific Union Pacific (UP) rail lines in Oregon. This is reported by the railway transport news portal Railway Supply.

The Surface Transportation Board (STB) has approved Central Oregon & Pacific Railroad Inc. (CORP) to lease and operate specific Union Pacific (UP) rail lines in Oregon

This decision allows Union Pacific to transfer local service operations to CORP, a move that has garnered support from various shippers.

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Several shippers have praised the deal, citing CORP’s proven ability to deliver exceptional customer service and its commitment to enhancing local operations. According to STB officials, this transaction is expected to improve service quality in the region.

The Surface Transportation Board’s Regulatory Approval

On December 10, 2024, CORP submitted a verified notice of exemption to lease and operate 27.58 miles of rail line from Union Pacific in Oregon. In compliance with regulatory requirements, the STB directed CORP to notify the Brotherhood of Railroad Signalmen (BRS) about the intent to move forward with the lease.

Transaction Clears Final Hurdles

On February 11, CORP confirmed it had fulfilled the notice requirement by informing both BRS and the International Brotherhood of Electrical Workers. Following this, the STB dismissed objections to the exemption notice, allowing the lease transaction to proceed without further delay.

The STB’s analysis suggests that this lease could lead to greater operational efficiency and cost savings. Additionally, the Board expects CORP’s involvement to improve local service levels.

Board Member Robert Primus expressed agreement with this conclusion, adding his own comments in support of the decision.

This move marks a significant shift in regional rail operations, with potential benefits for both service quality and cost-effectiveness. The transaction reflects a broader trend towards enhancing local operations through more specialized, customer-focused rail services.

Source: www.progressiverailroading.com

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