Mar 16, 2008
Liability the issue in CSX talks
Commuter rail expansion stalled
By Priyanka Dayal TELEGRAM & GAZETTE STAFF
Worst-case scenario: An impaired freight-train engineer rams his train into a commuter train, injuring and killing hundreds of passengers.
Implausible as it is, lawmakers and state officials vying to purchase a stretch of railroad from CSX Corp. are worried that if the state buys the tracks under the terms CSX is proposing and a freight train causes an accident, the state could drown in liability costs.
State transportation officials have been negotiating with CSX for several years to purchase 22.8 miles of railroad from Framingham to Worcester, with the goal of increasing commuter service to Worcester. As long as CSX owns and controls that line, commuter service is at the mercy of the $20 billion corporation and its freight.
CSX representatives and members of Worcester’s Statehouse delegation met recently to discuss, among other things, the possible sale of the railroad. But they kept getting stuck on the contentious, though familiar, issue of liability.
CSX wants a no-fault policy, in which the company and the state would be responsible for their own property, regardless of who is at fault in an accident. The state says setting that kind of gross negligence standard is unreasonable and irresponsible.
“They want the state, the taxpayer, to assume all liability, regardless of fault, which to me is just fundamentally wrong,” said state Rep. Robert P. Spellane, D-Worcester, one of the lawmakers who attended a private meeting with CSX March 6. “When in society do we ask some people to take responsibility for other people’s actions?”
He said the example of the impaired freight-train engineer is “a far-flung tragic incident, but that’s how we have to look at it.”
State Sen. Edward M. Augustus Jr., D-Worcester, said the state has been stuck with heavy liability costs before, pointing to steep legal settlements with Big Dig contractor Bechtel-Parsons Brinckerhoff.
He called CSX’s liability policy “a phenomenally bad deal for taxpayers.”
CSX is requesting no-fault indemnity on the basis of precedent, and says what it is demanding from Massachusetts is no different from agreements it has struck with other purchasers.
Lawmakers and state officials, however, insist a non-fault-based agreement would be unfair and risky, and vow not to get involved in that kind of deal.
“It seems like we’re kind of at a stalemate,” Mr. Augustus said.
“(Liability) is the major issue that is keeping the sale of the tracks from happening,” said Sen. Harriette L. Chandler, D-Worcester. “That’s most unfortunate and most unfair … that’s very unacceptable.”
Legislators say acquiring the 22.8-mile piece of railroad is the only way to achieve the long-term goal of doubling commuter service between Worcester and Boston, to 20 trains in each direction.
“We have incredible ridership … we need more flexibility,” Ms. Chandler said. “The only way it can be increased in the long run is if the state owns the track.”
The impasse is familiar to Lt. Gov. Timothy P. Murray; it has frustrated the former Worcester mayor for years.
“The fact of the matter is they want no fault; we have real public policy and public safety concerns about that,” he said in a recent interview. “What incentives are you giving them to be safe?”
CSX essentially is asking for liability policies to stay the same as they are now. The year before commuter rail service to Worcester was launched in 1995, state officials agreed to give CSX complete indemnity, regardless of fault, on the company-owned tracks from Worcester to Framingham. At the time, state transportation officials thought the liability conditions a fair trade-off for providing commuter service.
But if the state purchases those tracks, the situation must change, the lieutenant governor said. He said the state can’t be expected to fork over hundreds of millions of dollars for a railroad, and still be threatened with potentially exorbitant liabilities.
Over the years, CSX has filed some minor claims with the state, according to Mr. Murray.
The 20.9-mile railroad line linking Framingham and Boston is on state-owned land, and liability on those tracks is determined according to fault, said state Executive Office of Transportation spokesman Klark A. Jessen. That policy is detailed in a 1985 trackage rights agreement.
“That’s the position we want for the entire line,” Mr. Jessen said.
Robert Sullivan, a spokesman for CSX, said CSX representatives periodically meet with state officials and legislators to discuss negotiations but declined to go into the specifics of the March 6 meeting.
“We are not asking for anything different than what already exists in the state,” he said about the company’s liability policy. “You take care of what you bring to the railroad.”
Mr. Sullivan said CSX, which owns 21,000 miles of railroad across the country and transports freight as varied as grains and weapons, would not agree to any deal that diminishes freight service. Asked how a fault-based liability policy would diminish freight service, he said, “I’m not going to negotiate in the press. I’ll leave that to the negotiators.”
Twenty passenger trains and about 13 freight trains travel every weekday between Worcester and Boston. Between Framingham and Boston, there are twice as many passenger trains and about six more freight trains.
CSX, a New York Stock Exchange-listed company with a stock value that has soared 150 percent in the last three years, recently struck a deal in Florida: The state agreed to pay $491 million for 61 miles of track to provide commuter service in the Orlando area. The Tampa Tribune has reported that the agreement would protect CSX from liability in any accidents on the commuter lines purchased through the deal, even if the rail company was negligent.
The controversial agreement generated ire in the Florida Statehouse. Some lawmakers claimed the deal had been brokered in secret, and they complained about CSX’s liability conditions.
Mr. Murray said Amtrak, the national passenger-train service, also has been saddled with liability costs, a result of similar agreements with CSX.
State Rep. Vincent A. Pedone, D-Worcester, said he could not attend the March 6 meeting with his colleagues and CSX, but he had a phone conversation the next day with Maurice O’Connell, who represented CSX at the meeting. Mr. Pedone said he asked that CSX put its requests in writing so there is no confusion moving forward.
State Rep. James J. O’Day, D-West Boylston, echoed the concerns of the other lawmakers at the meeting.
“Their argument of ‘this is the way we do it in other states’ didn’t settle well with me,” he said. “Just because you do something one way doesn’t mean this is correct. One thing CSX is quick to point out is they are in the freight business and that is their priority.”
Lawmakers aren’t displeased by everything they hear about commuter service; they lauded CSX and transportation officials for improving punctuality on the Worcester line, from only 66 percent of trains arriving on time last year, to more than 90 percent arriving on time now.
Massachusetts Bay Commuter Railroad Co., which runs commuter service for the Massachusetts Bay Transportation Authority, changed timetables last month to give trains more time in the schedule to reach their destinations.
But while neither CSX nor the state is willing to budge on liability, increased passenger service remains murky for the future.
Ms. Chandler has her fingers crossed.
“I’m hoping there is some sort of miracle that will occur that will move them off this perspective,” she said.
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