Rails Roll On: Five More Years for California Train Lease
Published Date: 4/18/2025
Notice
Summary
San Joaquin Valley Railroad is extending its lease with Union Pacific to keep running 101.5 miles of rail lines in California for five more years. This means SJVR will continue operating key routes without interruption, keeping trains moving smoothly in the region. No big money changes were mentioned, just a solid commitment to keep the rails rolling through 2030.
Analyzed Economic Effects
3 provisions identified: 2 benefits, 1 costs, 0 mixed.
Five-Year Extension to Keep Lines Operating
San Joaquin Valley Railroad (SJVR) signed a Lease Amendment on January 9, 2025, to continue leasing and operating 101.5 miles of rail lines in California for an additional five years. This keeps SJVR as the operator of those lines under the amended lease through the extended term.
Waiver Request for 60-Day Labor Notice
SJVR says its projected revenues will exceed $5,000,000 and therefore normally would need to give a 60-day advance labor notice to employees on the affected lines, but SJVR has requested a waiver of that 60-day advance notice requirement. The Board will address the waiver request in a separate decision and will set the exemption's effective date separately.
Lease Includes Interchange Commitment
SJVR certifies that the Lease Amendment it entered into with Union Pacific contains an interchange commitment, and SJVR provided additional information about that commitment under 49 CFR 1150.43(h). A copy of the Lease Amendment with the interchange commitment was submitted to the Board under seal.
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Key Dates
Department and Agencies
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