Home » UP calls for Metra to accept latest offer in contract dispute (updated)

UP calls for Metra to accept latest offer in contract dispute (updated)

By Trains Staff | May 22, 2025

| Last updated on August 6, 2025


Railroad says terms are ‘reasonable and based on market value’

Freight and commuter trains at commuter station platform
A Metra Union Pacific West train passes a stopped UP freight at La Fox, Ill., on May 4, 2024. A UP statement calls for the commuter operator to accept its latest operating contract offer. David Lassen

OMAHA — Union Pacific has urged Metra to accept its latest contract offer in the long-running dispute over the transfer of commuter operations on three UP lines, saying the freight railroad “cannot continue subsidizing Metra’s operations.”

Liisa Stark, UP vice president of public affairs, said in a Wednesday, May 21, press release that Metra has paid rates “significantly below commercial market value” for more than a decade. “It is our hope these new rates will resolve the issue without further expensive litigation or regulatory appeals that has no benefit to Metra, Union Pacific, nor Chicago taxpayers.”

UP says the contract “offers Metra flexibility over its financial obligations based on service schedules and the number of trains using Union Pacific’s tracks.” The railroad says the rates are consistent with other passenger agreements it has in Illinois, Colorado, and California, and will take effect July 1 after the current contract expires.

Metra and UP have been addressing the terms of Union Pacific’s exit from providing commuter service for six years, a period that has seen a number of lawsuits and requests for the Surface Transportation Board to intervene. UP’s latest statement comes less than a week after Metra assumed operational and maintenance responsibility for service on the UP North, Northwest, and West lines on May 16, a move that has seen more than 800 employees move from UP to Metra [see “Metra assumes operation …,” Trains News Wire, May 19, 2025].

The statement also comes roughly midway between Metra’s presentation of opening arguments in the current STB case seeking terminal trackage rights on UP in the Chicago area — filed on May 5 — and UP’s response, which is due June 3. [See “Metra asks STB to require …,” News Wire, March 7, 2025, and “STB sets schedule …,” News Wire, March 20, 2025]. The current schedule calls for the matter to be in the hands of the board by the end of June.

“We are currently reviewing UP’s proposal,” Metra said in a statement this afternoon. “We are committed to making this a seamless transition for our riders and being good stewards of the funding we receive from our riders and taxpayers.”

— Updated at 4:18 p.m. CT with Metra statement.

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