• UP Being Taken to STB Over Tennessee Pass

  • Discussion about the Union Pacific operations past and present. Official site can be found here: UPRR.COM.
Discussion about the Union Pacific operations past and present. Official site can be found here: UPRR.COM.

Moderator: GOLDEN-ARM

  by John_Perkowski
 
Here’s the link: Real estate moguls seek to pry Tennessee Pass line away from Union Pacific

Fair use snippet: WASHINGTON — A firm controlled by billionaire New York City real estate magnates has asked the Surface Transportation Board to order Union Pacific to sell its 228-mile Tennessee Pass route so that the historic Colorado line can be reactivated.
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  by Jeff Smith
 
https://www.vaildaily.com/news/feds-ref ... line-sale/
A federal agency will not force Union Pacific to sell a railroad line that rolls through the valley.

A Kansas-based grain producer, KCVN, wants to buy Union Pacific’s Tennessee Pass railroad line to create a more direct route to West Coast markets and ports. Union Pacific said no, so KCVN asked the Surface Transportation Board to force Union Pacific to sell. The STB refused.

However, the STB, the federal agency that oversees America’s railways, left the door open just a crack, dismissing KCVN’s request “without prejudice,” meaning KCVN could come up with additional information and make its request again.

KCVN’s $8.8 million offer for the Tennessee Pass line is competing with another offer, reportedly from Rio Grande Pacific, to make it part of a system hauling crude oil from Utah’s Uintah Basin to Gulf Coast refineries. That could mean up to 400,000 barrels a day in as many as 10 trains rolling through the valley.
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KCVN offered UP $10 million for the 229-mile Tennessee Pass line on November 14, 2019. Union Pacific declined the offer on Dec. 30, 2019.
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It would cost $278 million to rehabilitate it, KCVN’s filing says. The Tennessee Pass line runs from Pueblo, over Tennessee Pass and down through the Vail Valley to Dotsero. Union Pacific has not used the Tennessee Pass line since the mid-1990s when UP merged with Southern Pacific.