Regional/commuter rail operator Metra and host freight railroad UP have been negotiating the transfer for several years. UP has historically provided service for Metra under a PSA (Purchase of Service Agreement), which has been extended several times while the railroads negotiate a new agreement.
Approximately 38% of Metra’s annual ridership (12 million out of a total 32 million passengers) is associated with the three lines owned, used and dispatched by UP (see map, below). Those lines were once operated by the Chicago & North Western Railway: the West Line to Elburn, the Northwest Line to Harvard and McHenry, and the North Line to Waukegan, with limited service to Kenosha, Wis. Metra has eight other lines; one of which, the historic Chicago, Burlington & Quincy line to Aurora, runs on right-of-way owned by BNSF, which still operates it under contract with Metra.
According to UP, its transfer of Train Operation services to Metra is expected in mid-April, “followed by the transfer of some Engineering services.” Mechanical and station agent services, along with some management services, have already been transferred, it noted. UP will continue to maintain the tracks and manage train movements on all three of its lines.
Financial negotiations, however, “are ongoing, including compensation for Metra’s use of Union Pacific’s tracks and infrastructure,” UP reported. “In August 2024, Metra and Union Pacific agreed to mediate the compensation matter before the Surface Transportation Board. The mediation, which had been extended several times, ended Jan. 31, 2025, without an agreement. Union Pacific extended an offer to Metra to use binding arbitration to resolve the issue.”
Commented UP Vice President Public Affairs Liisa Stark: “We are proud of the work Metra and Union Pacific have accomplished to progress the transfer of services. We are committed to reaching a financial agreement this year that is fair to both parties.”
Metra spokesman Michael Gillis on Feb. 11 told Railway Age that UP’s update is accurate. “We have worked cooperatively to transition mechanical and station agent services, along with some management services, from UP to Metra, and the transition of onboard personnel is expected to occur in mid-April, followed by the transfer of some engineering services,” he said. “The financial negotiations are continuing. Both of us have said that we are committed to not impacting service and that has not changed. Metra’s mission remains providing safe, reliable, efficient, and affordable rail service, while being a good steward of taxpayer dollars.”
